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Pakistan to receive first trench of International Monetary Fund bailout package

File photo. Photograph:( Reuters )

ANI Islamabad Gharbi, Punjab, Pakistan Jul 09, 2019, 10.25 PM (IST)

Out of the $6 billion bailout package, Pakistan will receive the instalment of $1 billion from the International Monetary Fund (IMF) today.

"Pakistan has paid attention to economic reforms...It was necessary to bump up tax collection in order to stabilise the economy," Ernesto Ramirez-Rigo, the IMF mission chief for Pakistan, said at a conference on Monday, according to Geo News.

The package is aimed at the stability of the country's economy and institutions.

"The bailout package will help Pakistan to pay its external debts, recover from its fiscal deficit, keep foreign exchange reserves to the equivalent of 3 months of imports and curb further devaluation of the rupee," Dunya News reported.

Ramirez-Rigo added that the bailout package indicated that Pakistan would implement "economic discipline."

The three-year bailout package was approved by the IMF's Executive Board last week.

"IMF Executive Board approved today a three-year US$6 billion loan to support Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," Gerry Rice, the IMF's spokesperson had confirmed the news on Twitter on July 3.

The Asian Development Bank has also announced plans to lend $10 billion to Pakistan for various development projects over the next five years.