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

The International Monetary Fund (IMF) has approved the final $1.1 billion tranche for Pakistan’s bailout package, providing much-needed financial support to the country. This funding is the second and last tranche of a $3 billion standby arrangement with the IMF, which was secured by Islamabad last summer to prevent a sovereign default.

The approval comes after Pakistan Prime Minister Shehbaz Sharif discussed a new loan program with IMF Managing Director Kristalina Georgieva at the World Economic Forum in Riyadh. Islamabad is now seeking a larger, long-term Extended Fund Facility (EFF) agreement with the IMF as the current standby arrangement is set to expire this month.

Finance Minister Muhammad Aurangzeb has stated that Islamabad could secure a staff-level agreement on the new program by early July. The country is looking for a loan over at least three years to achieve macroeconomic stability and implement necessary structural reforms. While the exact amount of the loan is yet to be disclosed, discussions between the Fund and the government are already underway.

This would mark Pakistan’s 24th IMF bailout, as the country faces a severe balance of payments crisis with a significant amount of debt and interest to repay in the coming fiscal year. The approval of this funding is crucial for Pakistan to address its economic challenges and work towards financial stability.