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IMF Agrees to Resume Pakistan’s Suspended Bailout

The International Monetary Fund (IMF) said that it has agreed with Pakistan to resume a suspended loan program that will inject $1.17 billion into the struggling economy as soon as next month.

The IMF said that a “staff level agreement” — which is still subject to board approval — will bring to $4.2 billion the amount dispersed under an extended fund facility (EFF) that could increase to $7 billion and stretch until June next year.

“Pakistan is at a challenging economic juncture,” Nathan Porter, who headed the #IMF team, said in a statement, adding external factors and domestic policies were to blame.

#Pakistan is desperate for international support for its import-heavy economy, which suffers from poor revenue collection and dwindling foreign reserves to pay its crippling debt.

Desperate to secure the IMF loan, the new prime minister, Shehbaz Sharif has imposed three fuel price hikes in three weeks -– cumulatively totaling 70 percent -– and raised the cost of electricity by more than 100 percent to effectively end the subsidies introduced by former Prime Minister Imran Khan.

“It became essential to resume the IMF program to save the country from default,” the new finance minister Miftah Ismail said.

“We knew it would damage our political reputation, but still we did it.”

The latest budget has earmarked 3.95 trillion rupees ($18.8 billion) just to service the country’s whopping debt of $128 billion.

#raahtv #imfdebt #imfloans #Pakistaneconomy #pakistanibusiness #pakistannews #pakistannewsheadlines

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