IMF greenlights last $1.1 billion installment for Pakistan’s bailout program | Global News

The International Monetary Fund (IMF) has approved $1.1 billion in funding for Pakistan, marking the second and final tranche of a $3 billion standby arrangement. This funding comes as Islamabad seeks to avert a sovereign default and address its chronic balance of payments crisis.

The approval of the funding follows discussions between Pakistan Prime Minister Shehbaz Sharif and IMF Managing Director Kristalina Georgieva at the World Economic Forum in Riyadh. Pakistan is now looking to secure a new, larger long-term Extended Fund Facility (EFF) agreement with the IMF as the current standby arrangement expires this month.

Finance Minister Muhammad Aurangzeb has stated that Islamabad could reach a staff-level agreement on the new program by early July. The country is seeking a loan over at least three years to achieve macroeconomic stability and implement much-needed structural reforms.

This potential loan would be Pakistan’s 24th IMF bailout, highlighting the country’s ongoing financial challenges. With a $350 billion economy facing a significant debt repayment burden, the IMF funding is crucial for stabilizing the country’s financial situation.

While the exact amount of the new loan is yet to be disclosed, discussions between the IMF and the Pakistani government are already underway. If secured, this loan would provide much-needed relief to Pakistan as it navigates its economic challenges and works towards financial stability.