IMF approves $7billion bailout package for Pakistan

The International Monetary Fund (IMF) Executive Board has approved a 37-month, $7 billion Extended Fund Facility (EFF) for Pakistan, reported 24NewsHD TV channel Wednesday.

This much-anticipated bailout, secured after months of negotiations, comes as Pakistan continues to face significant economic challenges.

The first installment of $1.1b to Pakistan will be released immediately.

Prime Minister Shehbaz Sharif expressed hope that this would be the country's last IMF program.

The deal was reached in July after Pakistan confirmed $12 billion in bilateral loans from Saudi Arabia, China, and the UAE, which was a key precondition for the IMF's approval.

Pakistan's external financing requirements included $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE. Additionally, the IMF identified a $2 to $2.5 billion external financing gap, which was filled through a Saudi oil facility, a $400 million ITFC facility from the Islamic Development Bank, and funding from Middle Eastern commercial banks.

Pakistan has long relied on IMF programs to stabilize its economy, often depending on loans from countries like Saudi Arabia and the UAE to meet the IMF's external financing targets.

PM expresses satisfaction over approval of IMF package

Prime Minister Muhammad Shehbaz Sharif expressed satisfaction over the approval of the International Monetary Fund’s (IMF) package of US$7 billion for Pakistan.

The prime minister, in a statement issued by the PM Office, said that the process for economic reforms was underway and after attaining economic stability, efforts would continue to achieve the goals of economic growth and development.

He said the boom in investment and business activities, which was the result of hard work by the government’s economic team, was a welcoming sign.

“Besides notable diplomatic accomplishments, another significant achievement has been the surge in foreign remittances sent by Pakistani expatriates,” the prime minister remarked.

He believed that it could be the last programme with IMF if such progress continued.

The prime Minister thanked the friendly countries, especially Saudi Arabia, China and the United Arab Emirates for extending support concerning the IMF package.

He also extended gratitude to IMF Managing Director Kristalina Georgieva and her entire team.

The PM also thanked the entire government economic team, Deputy PM and Foreign Minister Ishaq Dar; Finance Minister Muhammad Aurangzeb; Army Chief General Syed Asim Munir; Minister of State for Finance Ali Pervaiz Malik; Pakistan’s Ambassador in China Khalil Hashmi; the ambassadors of China, UAE, and Saudi Arabia in Pakistan; and Secretary Finance for their efforts and hard work to get the programme approved.

The prime minister thanked all the provincial governments, especially Punjab Chief Minister Maryam Nawaz, Sindh CM Syed Murad Ali Shah and Balochistan CM Sarfaraz Bugti.