News Brief
IMF And Pakistan Reach Preliminary Agreement For $1.1 Billion Bailout Release: What We Know So Far
Nayan Dwivedi
Mar 21, 2024, 11:13 AM | Updated 11:13 AM IST
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Pakistan and the International Monetary Fund (IMF) have reached a preliminary agreement for the release of $1.1 billion from a $3 billion bailout package, following days of intense negotiations in Islamabad, the IMF announced on Wednesday (20 March).
The agreement marks a crucial step for Pakistan, which has been grappling with severe economic challenges and the threat of defaulting on its debt repayments.
According to the IMF statement, “it has reached a staff-level agreement with the Pakistani authorities” and noted that approval by the IMF’s executive board “is considered a formality.”
The talks, led by Pakistan's Finance Minister Muhammad Aurangzeb and the IMF's mission chief to Pakistan, Nathan Porter had began last Thursday (14 March).
Last year, Pakistan signed the $3 billion bailout agreement to address its economic crisis, with the latest tranche being the final installment.
This bailout was approved under the tenure of former Prime Minister Imran Khan, who was replaced by Prime Minister Shehbaz Sharif after a no-confidence vote in parliament.
The agreement comes amid political tensions, with Khan urging the IMF to link talks with Islamabad to an audit of recent elections, which his party claims were rigged.
However, authorities have dismissed these claims.
The IMF also highlighted ongoing challenges, including modest growth projections and inflation above target levels in Pakistan.
It emphasized the need for continued policy efforts and reforms to address the country's economic vulnerabilities.
Meanwhile, Sharif's government has pledged to uphold economic stability and implement necessary reforms, including broadening the tax base and adjusting power and gas tariffs.
Also Read: US Backs India, Reaffirms Arunachal Pradesh As Indian Territory Amid Chinese Claims
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Nayan Dwivedi is Staff Writer at Swarajya.
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