On Wednesday, 3rd July 2019, the IMF Executive Board gave the go-ahead for the $6 billion bailout package requested by Pakistan. IMF released $1 billion immediately to strengthen the economic condition of Pakistan and the rest would be given over a 39-months period.
IMF spokesperson Gerry Rice said on Twitter that, “ IMF Executive Board approved today a three-year USD 6 billion loan to support Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living.”
Advisor to the PM on Finance, Dr. Abdul Hafeez Sheikh said on Twitter that, “ IMF Board approved $6 billion Extended Fund Facility (EFF) for Pakistan to support our economic reform program. Our program supports broad-based growth by reducing imbalances in the economy. Social spending has been strengthened to completely protect vulnerable segments.”
Dr. Hafeez further said that, “ The government’s structural reform agenda of improving public finances and reducing public debt through revenue reforms is a key part of the program.”
He added that, “ The IMF support bodes well for the country and is a testament to the government’s resolve for ensuring financial discipline and sound economic management.”
Earlier on Wednesday, Pakistan’s Minister for Revenue Hammad Azhar said that the deal with IMF would encourage foreign investors to invest in Pakistan. He added that the government is negotiating with the Asian Development Bank to fund a state of the art, transit and cargo facility at Torkham and Chaman borders.