IMF Approves $7bn Loan for Pakistan After Two-Month Wait
The International Monetary Fund (IMF) has finally approved a new $7bn loan for Pakistan, providing much-needed relief to the cash-strapped country. Prime Minister Shehbaz Sharif expressed gratitude to the IMF and highlighted the rigorous negotiations that had taken place since June to secure the deal.
Pakistan had been diligently working to meet the stringent conditions set by the IMF for the 37-month loan program, with assistance from allies such as China and Saudi Arabia. The country, burdened with external debt exceeding $130bn, is required to repay almost $90bn over the next three years.
Despite facing economic challenges for decades, Pakistan has made progress in meeting IMF requirements and increasing tax intake. The recent approval of the loan marks a crucial step towards stabilizing the country’s economy and avoiding a sovereign default.
With inflation rates improving and credit ratings being upgraded, Pakistan is on a path to economic recovery, thanks to the support of international lenders and strategic allies.
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