ISLAMABAD: The International Monetary Fund (IMF) has disbursed the first tranche of $1 billion to Pakistan as part of a new $7 billion bailout package under the Extended Fund Facility, aimed at addressing the country’s financial challenges.
The loan program was approved yesterday, more than two months after an initial agreement between both parties.
This funding, which will be distributed to Pakistan over 37 months, is intended to provide a crucial boost to the struggling economy.
IMF Managing Director Kristalina Georgieva expressed optimism about Pakistan’s economic prospects, stating, “We have good news; we have completed our review for Pakistan. The economy is moving in the right direction, with growth improving and inflation decreasing.”
During a conversation with Pakistani journalists, Georgieva congratulated the country on its reforms, which have led to notable economic improvements. She highlighted that positive changes have resulted in increased production and a decline in inflation, indicating a path toward stability.
Georgieva also noted the government’s approach of taxing the wealthy while supporting the poor, calling it a positive development.
In a statement from the Prime Minister’s Office, Prime Minister Shehbaz Sharif expressed satisfaction with the approval of the $7 billion IMF package, stating that the implementation of economic reforms is progressing rapidly. He emphasized the need for continued efforts to achieve economic stability and growth targets.
Following a staff-level agreement in July, discussions at the executive board took place in August and the first three weeks of September, but Pakistan’s program approval was not included in those talks.
