Pakistan has reached an agreement with the International Monetary Fund for $6 billion bailout package. The financial aid is an attempt to help the country strengthen its slowing economy, improve public finances and reduce debt, IMF said in a statement on Sunday. The funding, which still needs approval by the IMF board in Washington, would be provided over three years.
“Pakistan is facing a challenging economic environment, with lackluster growth, elevated inflation, high indebtedness, and a weak external position,” the IMF said. “The authorities recognize the need to address these challenges, as well as to tackle the large informality in the economy, the low spending in human capital, and poverty.”
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Confirming the deal, Pakistan’s advisor on finance, Abdul Hafeez Shaikh, said that the country will receive the funds to meet its foreign debt obligations. “So Pakistan will get $6 billion from the IMF, and in addition, we will get $2 to $3 billion from the World Bank and Asian Development Bank in the next three years,” AFP quoted Shaikh as saying in a state televison broadcast.
