Pakistan finally gets $3b IMF loan

Pakistan finally gets $3b IMF loan

Pakistan finally got a $3 billion bailout package to save the country from default. The International Monetary Fund lends this bailout package after a lot of struggle and friendly countries’ support in funds’ deal.

The IMF Executive Board approved a nine-month Stand-by Arrangement (SBA) in the amount of SDR2.25 billion or about $3 billion. The amount is equal to Pakistan’s 111% of the quota.

Read more | Pakistan became fourth biggest IMF debtor

After the finalisation of the board meeting, the IMF said in a statement, “The arrangement comes at a challenging economic juncture for Pakistan”.

The main concern of Board members

The board members were seriously concerned about Pakistani political issues and the country’s failure to honour the commitments. The discussions of the board suggested that Pakistan got the last opportunity to put the country together.

The political rulers should work together and help the country get back to its strong position. The discussion also added that India tried to spoil the show and eventually abstained from voting.

This year’s programme is the 23rd programme that Pakistan signed with the IMF. The last programme which was fully implemented and successful was back in 2013-16.

To manage the IMF programme successfully, Pakistan had to bring changes in its various reforms and also in the proposed budget. The government overburdened the salaried class but saved the traders which is not right.

Read more | PM Pakistan to meet MD IMF

The State Bank of Pakistan (SBP) also withdrew restrictions on imports as part of the IMF conditions and also increased the interest rate by 1% to 22%.

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