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IMF executive board approves over $6b package for Pakistan

WASHINGTON: According to sources privy to NPTV the Executive Board of IMF has approved the bailout package to Pakistan here today. 

Now IMF is all set to provide  $ 6 billion 200 million loan to Pakistan over a period of three years under the extended fund facility. 

According to details an IMF team will be regularly visiting Islamabad in order to keep an eye on the economic indicators every three months. While one billion dollars will be transferred into Pak coffers immediately a total amount of two billion dollars will be given to Pakistan in the current year. 

It is pertinent to mention here that the PTI Govt, had to take a number of unpopular decisions in order to fulfill IMF conditions. As a result on one end the Pak rupee got devalued against US dollar (and other currencies) on the other hand the essential commodities became dearer. 

For instance, the price of natural gas has been enhanced by ECC on the dictation of IMF. Average domestic users who can hardly generate money to exist will have to pay 31 to 190 percent more on natural gas. 

Nevertheless, it is claimed that the living standard of common citizens would ameliorate due to this loan. 

Advisor to PM on Finance, Revenue and Economic Hafeez Shaikh has taken to the twitter to hold: 

Dr. Hafeez Shaikh

According to Hafeez Shaikh IMF bailout package of six billion dollars would help safeguard economic condition of the country. He noted that bailout package approved by the IMF Executive Board would bring economic stability.

Relevant: The International Monetary Fund (IMF) today approved a $6 billion loan for Pakistan, a 39-month extended arrangement, to support the country’s economic reform program.
After approval of the loan under Extended Fund Facility (EFF) by the Executive Board of IMF, Pakistan is now eligible to immediately receive first tranche of $1 billion, an IMF statement said.
The fund will quarterly review the performance of Pakistan over 39 months.
The EFF-supported program will help Pakistan to reduce economic vulnerabilities and generate sustainable and balanced growth.
The statement added that the program will focus on a decisive fiscal consolidation to reduce public debt and build resilience while expanding social spending.
It will also try to ensure a flexible, market-determined exchange rate to restore competitiveness and rebuild official reserves besides eliminating quasi-fiscal losses in the energy sector, strengthening institutions and enhancing transparency. app

 

 

 

M M Alam

M. M. Alam is a Pakistan-based working journalist since 1981. Karachi University faculty gold medalist Alam began his career four decades ago by writing for Dawn, Pakistan’s highest circulating English daily. He has worked for region’s leading publications, global aviation periodicals including Rotors (of USA) and vetted New York Times as permanent employee of daily Express Tribune. Alam regularly covers international aviation and defense-related events including Salon Du Bourget (France), Farnborough (United Kingdom), Dubai (UAE). Alam has reported thousands of events and interviewed hundreds of people in Pakistan, UAE, EU, UK and USA. Being Francophone Alam also coordinates with a number of French publications.