Pakistan and IMF reach agreement on bailout programme

Edited By: Manas Joshi
Islamabad Updated: Jun 22, 2022, 09:31 PM(IST)

IMF Photograph:( Reuters )

Story highlights

During the talks, the Pakistani side expected the IMF to increase the size and duration of USD 39 billion bailout facility

Pakistan and International Monetary Fund (IMF) have reached an agreement over bailout programme, said Pakistani media. It is expected that the agreement will be signed in-principle on Friday (June 24). 

During the talks, the Pakistani side expected the IMF to increase the size and duration of USD 39 billion bailout facility.

Pakistan's economy is teetering on the brink of a financial crisis. Foreign exchange reserves of the country are drying up fast. Pakistani rupee is at record low against th US dollar.

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Earlier, both sides had said that there was progress in talks.

"Discussions between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue, and important progress has been made over the FY23 budget," Esther Perez Ruiz, the IMF`s resident representative in Islamabad

However, the lender later said additional measures were needed to bring Pakistan`s budget in line with the key objectives of the IMF programme.

This month, Pakistan unveiled a 9.5 trillion Pakistani rupees (USD 47 billion) budget for the year 2022-23. The budget was aimed at tight fiscal consolidation in a bid to convince the IMF to restart much-needed bailout payments.

(With inputs from agencies)

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