Mumbai: The International Monetary Fund (IMF) has approved a $7 billion bailout package under its Extended Fund Facility (EFF) for Pakistan. The IMF has yet to formally confirm the development announced by the Pakistan Prime Minister’s Office on Wednesday. The assistance is expected to provide vital support to Pakistan’s struggling economy.
The PMO announced the development while a statement is expected from the IMF. The PMO said the premier expressed satisfaction with the programme’s approval.
According to Geo News, the first tranche of $ 1.1 billion is expected to be released by September 30, 2024, and the second by the end of this fiscal year. The IMF loan will be the most expensive in Pakistan’s history, said the Express Tribune. The interest rate on the loans will be less than 5%, sources claimed.
The bailout package was approved after Pakistan promised a slew of economic reforms including overhauling of its agriculture income tax loan and transfer of fiscal responsibilities to provinces.
In a statement, Prime Minister Shehbaz Sharif expressed his satisfaction with the approval of the loan program. He extended his gratitude to IMF Managing Director Kristalina Georgieva and her team. He also thanked friendly nations, particularly Saudi Arabia, China, and the United Arab Emirates (UAE), for their support in helping Pakistan secure the bailout package.