Pakistan, IMF reach $3 Bn staff-level agreement
Jun 30, 2023
New Delhi, June 30 (ANI): Finally, IMF has reached a staff-level pact with Pakistan on a $3 billion stand-by arrangement. It has been a long-awaited decision for Pakistan which is teetering on brink of the default. The deal comes after an eight-month delay and offers some respite to debt-ridden Pakistan. Notably, Pakistan is battling an acute balance of payments crisis and falling foreign exchange reserves. However, the $3 billion funding, spread over nine months, is higher than expected for Pakistan. Pakistan was awaiting release of the remaining $2.5 Bn from a $6.5 Bn bailout package agreed in 2019. Pak’s economy had faced several challenges including devastating floods, commodity price hikes owing to Ukraine War. As per IMF, the new arrangement would provide a framework for financial support from bilateral partners.
