Islamabad, January 14 – The International Monetary Fund (IMF) has approved the release of a $700 million loan tranche for Pakistan, providing a boost to the country’s struggling economy.
The payment is part of Pakistan’s $6 billion bailout package agreed with the IMF in 2019 to stave off a balance of payments crisis. It comes after the completion of the first review of the reform program monitored by the IMF.
With this latest disbursement, Pakistan has now received a total of $1.9 billion from the IMF bailout package. The funds are expected to ease pressure on Pakistan’s dwindling foreign exchange reserves and support the Pakistani rupee.
Analysts said the IMF loan will provide breathing room for the government to enact tough economic reforms mandated by the program, including tax collection, energy pricing, and reducing debt.
“The IMF money will stabilize the rupee in the short term and enable the government to repay foreign debt,” said Muhammad Sohail, CEO of Topline Securities.
However, Pakistan faces a challenging economic outlook in 2023 with high inflation, slowing growth and devastating floods still impacting the country. The government hopes the continued IMF support will help steer the economy through this difficult period.
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