Pakistan and the International Monetary Fund have reached a preliminary agreement for the release of $1.1 billion from a $3 billion bailout. The agreement comes after days of talks between the IMF and Prime Minister Shehbaz Sharif’s government in Islamabad. Pakistan signed the bailout last year to overcome a severe economic crisis and avoid defaulting on its debt repayments.
The IMF stated that Pakistan’s economic and financial position has improved in recent months, but growth is expected to be modest and inflation remains high. The IMF praised Pakistan’s efforts to address economic vulnerabilities and expressed confidence in the government’s commitment to policy reforms.
Prime Minister Sharif’s government is dedicated to ensuring economic stability for the remainder of the year by broadening the tax base and implementing tariff adjustments for power and gas. Pakistan has also expressed interest in seeking a new bailout of up to $8 billion once the current one expires this month.
The agreement with the IMF comes amid political tensions in Pakistan, as former Prime Minister Imran Khan has alleged that the recent elections were rigged. Khan’s party has called for an audit of the elections. The IMF has dismissed these claims and emphasized the need for ongoing policy and reform efforts to strengthen Pakistan’s economy.
Source
Photo credit apnews.com
