The Executive Board of the International Monetary Fund (IMF) agrees to help Pakistan’s economy in the form of bailout package amounting $6bn. It is expected that the Asian Development Bank, as well as the World Bank, will also release the funds $1 bn each.
It is also expected that after getting the loan Pakistan will issue bonds in the International market in the next 6 to 7 months. And they may have good auction rates in the market that could be like 6.75 to 7.25 %. The aid period will be divided into 39 months. The IMF will also monitor the performance of government. All the expenditures and revenue schemes will be under observation by IMF experts.
So, a very crucial time is going to be started in Pakistan. It needs stability in the country first because the value of rupee is already very down. If there remains political instability then paying back the interest and amount of loan will be too much difficult.
IMF Board approved a $6 billion Extended Fund Facility (EFF) for Pakistan to support our economic reform program. Our program supports broad based growth by reducing imbalances in the economy. Social spending has been strengthened to completely protect vulnerable segments.
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) July 3, 2019