Pakistan to get $500 Million from IMF in a deal on reforms

Npnews24 : The International Monetary Fund (IMF) and cash-strapped Pakistan on Tuesday reached an agreement over reforms paving the way for imbursement of USD 500 million as part of revival of a stalled bailout programme, the finance ministry said.

“The package strikes an appropriate balance between supporting the economy, ensuring debt sustainability and advancing structural reform,” the Fund said in a statement issued by both sides.

Back in April 2020, The IMF made cash-strapped Pakistan go through a series of suffering as it postponed the review of its $6 billion bailout package for the country. The report cited that this action was undertaken because of the country’s delay in implementing the agreed-upon actions. The bailout package was sought after in 2018 after Imran Khan’s government took over.

The statement said that an IMF team led by Mission Chief to Pakistan Ernesto Ramirez Rigo held virtual discussions with Pakistani authorities and reached the staff-level agreement on February 16.

Finance Minister Dr Abdul Hafeez Shaikh also confirmed the agreement on Twitter, saying that “overcoming the challenges created by the pandemic has required concerted effort”.

Authorities are counting on the IMF bailout package to bolster Pakistan’s fiscal position and increase global confidence in its economy. Pakistan entered a $6 billion IMF programme in 2019.