IMF Approves $7 Billion Bailout Package for Pakistan Amid Economic Challenges

 

The International Monetary Fund (IMF) has officially approved a substantial bailout package of $7 billion for Pakistan.

This decision came during an Executive Board meeting led by IMF Managing Director Kristalina Georgieva, where Pakistan’s situation was a primary focus. 

According to reports from the Ministry of Finance, Pakistan is likely to receive an initial tranche of $1.1 billion by September 30. Once the loan program is approved, the subsequent tranche is also expected to be disbursed within the same fiscal year.

Sources suggest that this IMF loan will carry an interest rate lower than 5%, which is seen as a favorable term for the country.

In a recent briefing in Washington, Julie Kozak, the IMF’s Director of Strategic Communications, stated that the board meeting was convened following assurances from Pakistan’s development partners regarding the provision of essential financial support.

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