Pakistan to get bailout of $6bn from IMF over next 3 years

The final outcome was further delayed after Prime Minister Imran Khan objected to some of the stringent conditions by the IMF. The talks were extended to continue over the weekend and were capped on Sunday.

Pakistan and the International Monetary Fund (IMF) have agreed to a bailout package of nearly $6 billion over the next three years to meet foreign debt obligations, prime minister’s adviser on finance Abdul Hafeez Shaikh announced on Sunday.

Pakistan would receive USD 6 billion worth of assistance under the IMF programme over a period of three years, Shaikh told the state-run PTV News. (HT Photo)

“After months of discussions and negotiations, a staff-level agreement has been reached between Pakistan and the IMF,” he told state-run PTV News. He said the agreement, which must still be approved by the IMF board of directors in Washington, would show that effective reforms were underway in Pakistan. “The Pakistani authorities and the IMF team have reached a staff level agreement on economic policies that could be supported by a 39-month Extended Fund Arrangement (EFF) for about US $6 billion,” an IMF press release quoted IMF mission chief for Pakistan Ernesto Ramirez Rigo as saying.

The facility aims to support Pakistani authorities’ “strategy for stronger and more inclusive growth by reducing domestic and external imbalances, removing impediments to growth, increasing transparency, and strengthening social spending”, the statement said.

“In this regard, the government has already initiated a difficult, but necessary, adjustment to stabilise the economy, including thorough support from the State Bank of Pakistan. These efforts need to be strengthened,” he added.