The International Monetary Fund (IMF) has approved a $7 billion Extended Fund Facility (EFF) for Pakistan, providing a much-needed boost to its struggling economy. Prime Minister Shehbaz expressed satisfaction with the approval, highlighting the rapid implementation of economic reforms and the government’s commitment to achieving economic stability and development goals.
He credited the increase in business activities and investments to the hard work of the economic team and expressed gratitude to Saudi Arabia, China, the UAE, and IMF Managing Director Kristalina Georgieva for their support. PM Shehbaz expressed optimism that this would be Pakistan’s last IMF programme, emphasizing the nation’s efforts to seek financial independence.
Primary goals of new deal
The bailout package aims to stabilize Pakistan’s economy by consolidating public finances, rebuilding reserves, reducing fiscal risks, and fostering private-sector-led growth. Securing financial commitments from allies like Saudi Arabia, China, and the UAE was crucial for finalizing the deal.
Pakistan’s ongoing reliance on IMF programs underscores the need for reforms to address debt restructuring and economic challenges. Despite facing multiple crises, the country is making significant strides towards financial stability with the IMF’s support.