The International Monetary Fund—IMF has given approval to $6 billion loan for Pakistan. The approval has been given on Wednesday. This would be a 3-year loan programme.
The IMF board has given $1 billion to Pakistan instantly and mentioned in a statement that the programme is focused at “supporting the authorities economic reform program” and to assist in curbing the economic liabilities and to produce bearable balanced growth.
IMF would be reviewing the performance of Pakistan on a quarterly basis over a span of 39 months, adding the additional release aid over time.
This would be the 13th programme of IMF for Pakistan.
Last month the government gave approval to the loan programme and made the announcement of plans to reduce the civil expenses and to freeze the military spending while assuring to justifiably increase the revenues to handle the fiscal deficit, and asked to gather Rs.5.5 trillion ($36 billion) in taxes.
Repeated rupee devaluation has spread discontent in the country, increasing inflation and surging the utility costs, while the tax collection has been a long-standing challenge for the authorities.
Ramirez Rigo—the IMF mission chief said that Pakistan is witnessing a challenging economic environment, with high inflation, weak external position, dull growth and high indebtedness. He added that this all is the result of uneven policies.
The deal encompasses a primary budget deficit target of 6percent of GDP—excluding the debt service costs.