IMF approved a $7 billion bailout package for Pakistan
The International Monetary Fund (IMF) approved a $7 billion bailout package for Pakistan, Package will be 37 months long in duration. The first tranche of $1.1 billion has also been approved for release, with funds expected to be transferred by September 30.
The loan will carry an interest rate of less than 5%, according to the Ministry of Finance. The approval came during a meeting of the IMF Executive Board in Washington, where Pakistan’s package was a key agenda item.
The latest bailout, coming to Pakistan in the form of loans, follows a commitment by the government to implement reforms, including a major effort to broaden the country’s tax base.
According to the statement, Pakistan will be receiving the money in the next three years if it lives up to the promises the current government has made with the Fund. These include measures to tax everyone in the county and privatise the state’s own organisations.
