ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif expressed his satisfaction with the International Monetary Fund’s approval of a $7 billion loan program for Pakistan.
The premier, who is currently in New York to attend the 79th Session of the UN General Assembly, extended his gratitude to friendly nations, particularly Saudi Arabia, China, and the United Arab Emirates, for their support regarding the IMF package.
He also thanked IMF Managing Director Kristalina Georgieva and her team for their efforts.
The Prime Minister noted that, by the grace of Allah, the implementation of economic reforms is progressing vigorously. He emphasized that the government will continue to work diligently to achieve economic development following stabilization.
Shehbaz Sharif highlighted the increase in business activities and investments in Pakistan as positive signs and evidence of the economic team’s hard work.
Earlier today, the IMF Executive Board approved a 37-month Extended Fund Facility (EFF) program worth $7 billion for Pakistan, providing a crucial lifeline as the incumbent government is optimistic that it would be the country’s last IMF program, local media reported.
The IMF board approved the loan program after the Pakistani government secured commitments for $12 billion in bilateral loans from friendly countries, which were essential for the IMF’s approval. The board also authorized the immediate release of the first loan tranche of nearly $1.1 billion. It is the 25th IMF program that Pakistan has obtained since 1958 and the 6th EFF.
The financing package aims to help stabilize Pakistan’s economy, which has been under significant strain due to rising debt levels, inflation, and a balance of payments crisis. The current administration is optimistic that this will be the last IMF program needed, signaling a shift towards more sustainable financial management.
The new bailout package targets achieving macroeconomic stability by consolidating public finances, rebuild foreign exchange reserves, reduce fiscal risks from state-owned enterprises, and improving the business environment to encourage growth led by the private sector.
