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Pakistan – IMF Deal: The news of great relief has come for Pakistan which is facing the economic crisis. The deal which Pakistan was waiting for a long time has been completed. To bail out the Pakistani economy from the crisis, an agreement has been reached between the International Monetary Fund and the Government of Pakistan for a $3 billion loan.
Announcing this, International Monetary Fund’s Head of Mission for Pakistan, Nathan Porter, said, “I am pleased to announce that the IMF team has signed an agreement with the Pakistani Authority for 111 per cent of Pakistan’s IMF quota or $3 billion. Staff-level agreement has been done under the standby arrangement of the month.
Announcing this, International Monetary Fund’s Head of Mission for Pakistan, Nathan Porter, said, “I am pleased to announce that the IMF team has signed an agreement with the Pakistani Authority for 111 per cent of Pakistan’s IMF quota or $3 billion. Staff-level agreement has been done under the standby arrangement of the month.
The $3 billion relief package to Pakistan is more than what it expected. In 2019, there was an agreement between the IMF and Pakistan for a loan of $ 6.5 billion. In which Pakistan was waiting to get $ 2.5 billion, whose term was going to end on June 30, 2023.
Nathan Porter said that the Pakistani economy has faced many challenges. Which includes a sharp jump in commodity prices after the Ukraine Russia war with the flood crisis last year. He said that despite efforts to reduce imports and reduce trade deficit, there has been a decrease in foreign exchange reserves. Cash crunch has also been seen in the power sector. Nathan Porter said that with this new agreement, it would be easier for Pakistan to get financial assistance in the coming days.
The deal will be sealed in the IMF’s board meeting in July. There has been a delay of 8 months in getting this deal done. However, now the completion of the deal will give some relief to Pakistan as well as help in dealing with the problem of dwindling foreign exchange reserves and payment crisis. For the past several years, the Pakistani economy is going through a crisis and the country is in economic distress. On top of that, the back-breaking inflation has made life difficult for the common people, especially the poor.
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