Washington, D.C. — The International Monetary Fund (IMF) has approved a significant bailout package of $7 billion for Pakistan, aimed at stabilizing the country’s economy over the next 37 months. The first tranche of $1.1 billion is set to be released by September 30, 2023.
The package, approved during a recent meeting of the IMF Executive Board, comes with an interest rate of less than 5%, according to Pakistan’s Ministry of Finance. This financial assistance is contingent upon the government’s commitment to implement crucial economic reforms, including a substantial effort to expand the tax base.
In its statement, the IMF emphasized that the disbursement of funds will occur over the next three years, provided Pakistan adheres to the reform commitments outlined by the current administration. Key measures include initiatives to ensure tax compliance among the population and the privatization of state-owned enterprises.
This latest financial support marks an essential step for Pakistan, which is grappling with economic challenges and seeks to bolster its fiscal stability and growth prospects.
