Islamabad: The International Monetary Fund (IMF) has approved $1.1 billion in funding for Pakistan, marking the second tranche of a $3 billion standby arrangement, as announced by the agency in a statement. This decision comes amidst discussions for a new loan.
The approval of the funding, which amounts to Rs 9181 cror, is the second and final tranche of the standby arrangement that Islamabad secured last summer.
This decision follows a meeting between Pakistan Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva during the World Economic Forum in Riyadh. During this meeting, discussions regarding a new loan program took place.
Pakistan is now seeking a larger, long-term Extended Fund Facility (EFF) agreement with the IMF as the current standby arrangement is set to expire this month. According to Pakistan’s Finance Minister, Muhammad Aurangzeb, Islamabad aims to secure a staff-level agreement on the new program by early July.
The country is seeking a loan that spans over at least three years to achieve macroeconomic stability and implement necessary structural reforms. However, the exact amount Pakistan is seeking has not been disclosed.
Pakistan’s economy, valued at $350 billion, is grappling with a chronic balance of payments crisis, with approximately $24 billion due in debt and interest payments over the next fiscal year—three times more than the foreign currency reserves held by its central bank. For the latest Real Estate News and Blogs, visit Realtorspk blogs.
