IMF offers assistance to Pakistan's sinking ship, and the Shahbaz administration would get Rs 246 billion

 IMF offers assistance to Pakistan's sinking ship, and the Shahbaz administration would get Rs 246 billion

IMF Pakistan News: According to the IMF's statement, this deal was established at a difficult economic crossroads for Pakistan. The nation is struggling with significant fiscal and external deficits, increasing inflation, and a shortage in reserves in FY2013 as a result of a challenging external environment, severe floods, and policy errors.

Islamabad. A $3 billion rescue programme for Pakistan was accepted by the International Monetary Fund (IMF) board on Wednesday (equivalent to 246 billion Indian rupees). Additionally, the organisation declared that it will give the South Asian nation emergency assistance in the amount of $ 1.2 billion. A staff-level deal between Pakistan and the IMF was achieved last month, providing the cash-strapped nation some much-needed financing.

Before the first payment of monies could be distributed, board permission was necessary; the remaining sum was to be paid out over time in installments. The International Monetary Fund (IMF) Executive Board "authorised an additional grant for Pakistan's economic stabilisation programme of SDR 2,250 million (about $3 billion, or 111 percent of the quota) for the goal of supporting the authorities," the IMF stated. IMF released a statement. A stand-by agreement (SBA) for nine months has been authorised.

According to the statement, this deal was reached at a difficult economic crossroads for Pakistan. The nation is struggling with significant fiscal and external deficits, increasing inflation, and a shortage in reserves in FY2013 as a result of a challenging external environment, severe floods, and policy errors.

The news was greatly welcomed by Pakistan's faltering economy because many people had given up hope of resuming the $6.5 billion IMF rescue programme. On June 30, this deal came to an end. In actuality, $2.6 billion of the $6.5 billion package has not yet been paid by the International Monetary Fund (IMF). In 2019, the IMF and Pakistan agreed to a six billion dollar loan, subject to Pakistan fulfilling certain requirements.

In order to obtain the delayed bailout package, Pakistan's Prime Minister Shehbaz Sharif expressed optimism that his nation could negotiate a staff-level agreement with the IMF. He had stated that Pakistan has complied with all requirements for the settlement with the international lender.