IMF Approves $7 Billion Loan For Pakistan To Revive Ailing Economy

The International Monetary Fund (IMF) executive board has approved a $7 billion loan for Pakistan, offering much-needed relief to the cash-strapped country.

The loan, which will be disbursed in installments over the next 37 months, is aimed at stabilizing Pakistan’s economy. Islamabad will receive an initial disbursement of $1 billion.

Prime Minister Shehbaz Sharif expressed gratitude to IMF Managing Director Kristalina Georgieva and her team for the approval, highlighting months of negotiations that culminated in the deal. Sharif also thanked China and other allies for supporting Pakistan in securing the agreement.

The IMF praised Pakistan for its efforts to restore economic stability, citing a rebound in growth, reduced inflation, and improved foreign exchange market conditions.

However, the global lender also raised concerns, emphasizing that Pakistan still faces significant challenges such as a narrow tax base, weak governance, and insufficient investment in health, education, and infrastructure.

The IMF warned that these issues hinder Pakistan’s economic potential and increase vulnerability to climate change.

This approval marks the continuation of Pakistan’s long history of reliance on IMF loans to address its financial difficulties.

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