The International Monetary Fund (IMF) has approved a $7billion loan to cash-strapped Pakistan, as the fragile economy of the South Asian nation grapples with deepening economic troubles.
The executive board of the IMF approved a 37-month extended arrangement under the Extended Fund Facility (EFF) for Pakistan.
The fund’s immediate disbursement would be about one billion U.S. dollars, the IMF said in a statement on Thursday.
The Prime Minister’s office said that the first tranche of nearly $1.1 billion U.S. would be released immediately.
Pakistan has approached the global lender 24 times since 1958 as successive governments failed to break the cycle of economic mismanagement and reliance on external aid.
The IMF statement also said that Pakistan’s vulnerabilities and structural challenges remain formidable.
Prime Minister Shehbaz Sharif welcomed the development: “After achieving economic stability, we will continue to work hard to meet our targets for economic growth.”
“If the same hard work continues, God willing, this will be Pakistan’s last IMF programme,” Sharif said in a statement.
Sharif’s team started the groundwork soon after the February elections and reached staff-level agreement with IMF in July.
His government is facing criticism after the imposition of heavy taxes on the salaried class and increasing the electricity prices.
The tough and unpopular decisions taken in line with the IMF’s preconditions have substantially eroded public support for the government.
Critics, especially from the opposition led by former prime minister Imran Khan, blame Sharif for making the economic situation worse.
The government argues that it inherited the crisis from Khan’s administration, whose policies had left the economy on the brink of collapse. (dpa/NAN)
