Can the IMF release Pakistan with a loan of $1.3 billion? Will it stop slowing down, will the economy collapse?
The new deal involves a deal for the first review of the ongoing $7 billion bailout package as the IMF praised Pakistan’s progress in restoring macroeconomic stability and rebuilding confidence, despite the challenging global environment.
International Monetary Fund
The International Monetary Fund (IMF) has reached an employee-level agreement with Pakistan to reach a $1.3 billion loan package in 28 months with a $1.3 billion loan package to support the country’s efforts to mitigate and adapt to climate change.
The new deal involves a deal for the first review of the ongoing $7 billion bailout package as the IMF praised Pakistan’s progress in restoring macroeconomic stability and rebuilding confidence, despite the challenging global environment.
According to government sources in the finance sector, Pakistan was able to show steady progress in inflation, with the range remaining within 1% to 1.5% during March.
The Ministry of Finance’s monthly economic outlook report has maintained its lowest levels in nearly a decade in the past few months. ”
“With the approval of the IMF Board of Directors, Pakistan will receive approximately US$1 billion in funding in the case of the Expansion Fund Facilities (EFF), bringing the total expenditure of the program to approximately US$2 billion,” the IMF said.
Pakistan’s Federal Finance Minister Muhammad Aurangzeb said that according to government policies, policies that meet the requirements of the International Monetary Fund have a positive optimism.
“We remain committed to continuing to move forward and continue to carry out structural reforms in taxes, energy and SOEs to move our country toward a trajectory of growth in sustainable productivity and export leadership,” he said.
It is the IMF Eff Bailout package that avoids the default of Pakistan’s economy. The IMF’s $7 billion bailout has helped stabilize the country’s $350 billion economy, providing some breathing space for Islamabad to stay away from the total financial collapse.
The IMF insists: “Although economic growth remains modest, inflation has dropped to its lowest level since 2015, financial conditions have improved, sovereign differences have been greatly narrowed, and external balances have been stronger.”
The approval of the first review of Pakistan’s IMF EFF facilities will also help to obtain $1 billion ahead of the annual budget.
However, the IMF noted the country’s geopolitical situation, warning that higher downside risks include geopolitical shocks to commodity prices, rising trade protectionism and tightening of global financial conditions, which could undermine Pakistan’s grand macroeconomic stability.
“Climate-related risks continue to pose a major challenge to Pakistan, which requires building resilience, including through adaptation measures.
In this regard, it is crucial to maintain the curriculum and curb progress over the past year and a half, which is to build resilience by further strengthening public finances, ensuring price stability, rebuilding external buffers and eliminating distortions to support stronger, inclusive and sustained private sector leadership growth, maintaining IMF Mission Chips Chip Cepart Nathan Porter.
(This story has not been edited by DNA staff and published from IANS except for the title)
