Islamabad (Web Desk): The International Monetary Fund’s (IMF) Executive Board on Wednesday approved $6 billion bailout package for Pakistan to support economic reform programme in the country.
According to details, Pakistan would receive $1b initially after which the international lender would keep on lending money in instalments.
In a tweet IMF Spokesperson Gerry Rice said, "IMF Executive Board approved today a three-year US$6 billion loan to support Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living".
IMF Executive Board approved today a three-year US$6 billion loan to support #Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living. pic.twitter.com/HCAMr1KWfK— Gerry Rice (@IMFSpokesperson) July 3, 2019
Meanwhile, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh also confirmed that the IMF Board approved a six billion dollars Extended Fund Facility for Pakistan to support economic reform program.
Shaikh in a tweet said, “IMF Board approved a $6 billion Extended Fund Facility (EFF) for Pakistan to support our economic reform program. Our program supports broad based growth by reducing imbalances in the economy. Social spending has been strengthened to completely protect vulnerable segments”.
“A structural reform agenda which includes improving public finances and reducing public debt through revenue reforms is key part of the program," the finance adviser added. He expressed resolve for ensuring financial discipline and sound economic management.
A structural reform agenda which includes improving public finances & reducing public debt through revenue reforms is key part of the program. This support bodes well for the country & is a testament to Govt. resolve for ensuring financial discipline & sound economic management.— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) July 3, 2019
On May 13, PM’s Adviser on Finance Dr Abdul Hafeez Shaikh announced that Pakistan has struck a deal with the IMF on a bailout package for about $6 billion over the next three years.
Shaikh had stated that the IMF programme will be implemented after its formal approval from fund’s board. He said the agreement will improve debt situation and sent a positive signal to the world to attract foreign investment.
He further said that the IMF programme will provide an opportunity to bring structural changes to handle issues pertaining to loss making state owned enterprises, exports, and to enhance revenue.
Hafeez Shaikh stated that the structural reforms and successful implementation of the IMF programme were vital for sustainable development and prosperity.