Pakistan Secures Crucial IMF Loan Approval to Bolster Economy

The International Monetary Fund's executive board approved Pakistan's loan review, unlocking $1.2 billion to support its economy. This decision aids Pakistan in rebuilding reserves, controlling inflation, and pursuing economic reforms. Prime Minister Shehbaz Sharif plans major privatization to stabilize the $370 billion economy.

The International Monetary Fund's (IMF) executive board has greenlit Pakistan's latest loan review, unlocking $1.2 billion in funds to prop up the nation's fragile economy. This crucial financial injection aims at bolstering the economy by rebuilding reserves and keeping inflation in check, while adhering to IMF stipulations.

The board sanctioned the release of $1 billion under Pakistan's $7 billion Extended Fund Facility, alongside an additional $200 million from the Resilience and Sustainability Facility. Thus, the cumulative disbursements under both schemes have now reached approximately $3.3 billion, signaling continued IMF backing.

The IMF's statement emphasizes the need for Pakistan to uphold prudent policies, expedite reforms for macroeconomic stability, and foster private sector-led growth. Prime Minister Shehbaz Sharif announced plans for a significant privatization event in December, targeting Pakistan International Airlines as part of reform commitments.

(With inputs from agencies.)