HomeWorldIMF board approved the Pakistan's bailout program allowing more than $1.1 billion...

IMF board approved the Pakistan’s bailout program allowing more than $1.1 billion to be released to the cash-strapped economy

The International Monetary Fund (IMF) board approved the seventh and eighth revisions of Pakistan’s bailout program, allowing more than $1.1 billion to be released to the cash-strapped economy, the fund and the government said on Monday. The IMF agreed to extend the program by a year and increase total funding by 720 million Special Drawing Rights, or about $940 million at current exchange rates.

The funds will be a lifeline for the South Asian country suffering from devastating floods that the country’s planning minister says have caused at least $10 billion in damage. IMF Deputy Managing Director Antoinette Sayeh said in a statement that sticking to the planned increase in fuel levies and energy tariffs was “imperative” as Pakistan’s economy was “hit by adverse external conditions”. These include “spillovers from the war in Ukraine and domestic challenges, including accommodative policies that have led to uneven and unbalanced growth,” he noted. The floods were not mentioned in the fund’s statement. Pakistan’s foreign exchange reserves have fallen to a level that only covers a month of exports, and its economy is struggling with a massive current account deficit and high inflation. The fund announced the approval and the amount to be disbursed hours after Finance Minister Miftah Ismail announced the news via Twitter.

The Extended Fund Facility (EFF) program was originally for 36 months and was worth $6 billion at the time of its approval in 2019. It has stalled since the start of this year as Islamabad struggled to meet lender targets. The IMF Board also approved Pakistan’s request for a waiver due to the country’s failure to meet certain program criteria. Ismail also said that the government’s efforts to bring the program back on track through painful economic remedial measures saved Pakistan from insolvency. The IMF board’s approval will open up additional multilateral and bilateral financing avenues for Pakistan, which has been waiting for a clean bill of money from the lender.

Read Now :The “Man of the Hole” the last surviving member of an Amazonian tribe

[responsivevoice_button buttontext="Listen This Post" voice="Hindi Female"]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

RELATED ARTICLES

Trending News

Health Focus :World’s first early screening test for pancreatic cancer has developed by Japanese biotech firm

A Japanese biotech firm says it has developed the world's first early screening test for pancreatic cancer, using the...

India’s G20 presidency will work to promote a universal sense of unity

India's G20 presidency will work to promote a universal sense of unity, Prime Minister Narendra Modi said on Thursday...

Total of 16 ALH Mk-III aircraft have been progressively inducted into the Indian Coast Guard

In a major push to further strengthen Coast Guard Area East, 840 Sqn (CG), Indian Coast Guard Advanced Light...

Senior journalist Ravish Kumar resigns from NDTV

Ramon Magsaysay Award winner Ravish Kumar has hosted a number of programs including the channel's flagship weekday Hum Log,...