Washington (TDI): The International Monetary Fund (IMF) has approved a critical $7 billion loan package for Pakistan.
The approval comes in the IMF Executive Board’s meeting in Washington today (Wednesday). Under the package, Pakistan will receive the first tranche of $1.1 billion and the funds could be transferred as soon as September 30.
Pakistan’s package was reportedly the top item on the agenda. The meeting will also discuss packages for Liberia, Turkey and Portugal.
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The new bailout package, spanning 37 months, is Pakistan’s 24th IMF assistance package which is crucial for the stabilization of the country’s fragile economy.
The IMF bailout approval will make Pakistan eligible to receive funds from other international organizations and countries.
Last week, Finance Minister Muhammad Aurangzeb stated that the terms of the loan would be made public on September 25.
Read More: IMF to Approve Program for Pakistan on Sept 25
The minister also claimed that he had negotiated the best terms with the international lender and that his five predecessors had not been able to negotiate such favourable terms with the IMF.
Aurangzeb hoped that it could be Pakistan’s last IMF programme, contingent upon the country implementing agreed-upon structural reforms.
The IMF had announced that it reached a staff-level agreement with Pakistan for an extended fund facility (EFF) of around $7 billion on July 13.
