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The International Monetary Fund has approved the revival of a massive loan programme to Pakistan, the finance minister said on Monday, as the country grapples with devastating monsoon flooding that has worsened an economic crisis.
“We should now be getting the 7th & 8th tranche of $1.17 billion,” Miftah Ismail said on Twitter.
An original $6-billion bailout package was signed by former prime minister Imran Khan in 2019, but repeatedly stalled when his government reneged on subsidy agreements and failed to significantly improve tax collection.
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The new agreement follows months of deeply unpopular belt-tightening by the government of Shehbaz Sharif, which took power in April and has effectively eliminated fuel subsidies and introduced new measures to broaden the tax base.
Islamabad has so far received $3 billion from the programme, but with the facility due to end later this year, officials sought an extension until June 2023.
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