Pakistan to get $6 billion aid from IMF for over 3 years

Vastavam web: Pakistan’s Prime Minister Imran Khan on Monday summoned a high-level meeting to discuss the country’s USD 6 billion loan agreement with the International Monetary Fund (IMF) which was finalized following months of negotiations between the two sides. Pakistan, currently battling to stave off an economic crisis, secured the bailout from the global lender on Sunday night. The funding, which still needs approval from the IMF’s management, would be provided over three years.

A session of the National Assembly will be held later on Monday where the opposition parties are expected to slam the bailout agreement. The latest agreement marks Pakistan’s 22nd bailout from the IMF as the country’s economy teeters due to low growth, soaring inflation and mounting debt.

The global lender said that it aims to support the Pakistan government’s structural reform agenda during the next three years. “This includes improving public finances, reducing public debt through tax policy and administrative reforms to strengthen revenue mobilization and ensure a more equal and transparent distribution of the tax burden.”

According to Pakistan’s finance adviser Abdul Hafeez Sheikh, the country will receive $6 billion from the IMF in addition to $2 to $3 billion from the World Bank and Asian Development Bank over the next three years. Slamming the bailout, Pakistan Muslim League (Nawaz) spokesperson Marriyum Aurangzeb said it was better for the Prime Minister “to have committed suicide (making good on his promise) than to have agreed to the $6 billion deal” with the IMF.