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Pakistan, IMF Reach $3 Billion Staff-Level Agreement
[ToloNews] The International Monetary Fund (IMF) has reached a staff-level pact with Pakistain on a $3 billion stand-by arrangement, the lender said, a decision long awaited by the South Asian nation which is teetering on the brink of default.The deal, subject to approval by the IMF board in July, comes after an eight-month delay and offers some respite to Pakistain, which is battling an acute balance of payments crisis and falling foreign exchange reserves. and diminished opium boodle The $3 billion funding, spread over nine months, is higher than expected for Pakistain. The country was awaiting the release of the remaining $2.5 billion from a $6.5 billion bailout package agreed in 2019, which expired on Friday. The new stand-by arrangement builds on the 2019 programme, IMF official Nathan Porter said in a statement on Thursday, adding that Pakistain's economy had faced several challenges in recent times, including devastating floods last year and commodity price hikes following the war in Ukraine. "Despite the authorities' efforts to reduce imports and the trade deficit, reserves have declined to very low levels. Liquidity conditions in the power sector also remain acute," Porter said in a statement. "Given these challenges, the new arrangement would provide a policy anchor and a framework for financial support from multilateral and bilateral partners in the period ahead." Related: International Monetary Fund: 2023-06-19 US warned of a wave of bankruptcies due to the decision of the authorities International Monetary Fund: 2023-06-15 Yellen: US Needs to Lend More to IMF, other Global Institutions to Bolster Influence International Monetary Fund: 2023-06-10 China May Be Headed for a Lost Decade Posted by: trailing wife 2023-06-30 |
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