IMF approves $3 billion Pakistan bailout programme

The South Asian nation and the Fund reached a staff level agreement

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By Reuters

Published: Wed 12 Jul 2023, 9:06 PM

Last updated: Wed 12 Jul 2023, 10:05 PM

The International Monetary Fund's board approved a $3 billion bailout programme for Pakistan on Wednesday, the lender said, which will immediately disburse about $1.2 billion to help the South Asian country.

Pakistan and the Fund reached a staff level agreement last month, securing much-needed funding for the cash-starved nation.

The board's approval was needed before disbursing the first tranche of money, with the rest to arrive later in instalments.

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"The Executive Board of the International Monetary Fund (IMF) approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR2,250 million (about $3 billion, or 111 percent of quota) to support the authorities’ economic stabilization program," the IMF said in a statement.

It added the arrangement comes at a challenging economic juncture for Pakistan. A difficult external environment, devastating floods and policy missteps have led to large fiscal and external deficits, rising inflation and eroded reserve buffers in FY23.

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Reuters

Published: Wed 12 Jul 2023, 9:06 PM

Last updated: Wed 12 Jul 2023, 10:05 PM

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