Islamabad: After long talks Pakistan is expected to get IMF loan. This is a primary deal , what is being called staff-level agreement. Under this agreement Pakistan is expected to get 6 billion dollars in loan from International Monetary Fund over a period of three years.
Adviser to the Prime Minister of Pakistan Dr Abdul Hafeez Shaikh said on Sunday that the Pakistan government and International Monetary Fund had agreed on a bailout package worth $6 billion dollar.
Speaking about the agreement, Dr Abdul Hafeez Shaikh said that after this agreement Pakistan will receive the monetary support over the next three years.
For quite some time Pakistan had been desperately trying to secure a loan from IMF. But the IMF was wary of extending any loan for fear of Pakistan using it to pay back Chinese loan Pakistan owed on account of the Chinese infrastructural projects in Pakistan.
IMF Mission Chief for Pakistan Ernesto Ramirez Rigo was quoted in an IMF press release as saying: "The Pakistani authorities and the IMF team have reached a staff-level agreement on economic policies that could be supported by a 39-month Extended Fund Arrangement (EFF) for about US $6 billion."
Pakistan has been reeling under tremendous economic pressure resulting from a very weak economy. IMF's monetary policy will help Pakistan to reduce domestic and external imbalances, allow it to improve business environment.
As per report, the package is Pakistan's 13th bailout since the late 1980s. Pakistan requires an economic support to meet the economic challenges.
Pakistan's economy is going to further slow down, according to IMF estimation, from 5.2 percent in 2018 to 2.9 percent this year.
Besides the assistance by IMF, Pakistan will also receive additional funds worth nearly $2-3 billion from institutions like the Asian Development Bank and World Bank, the Pak adviser said.
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