Abu Dhabi, UAETuesday 22 October 2019

Pakistan secures preliminary deal for $6 billion IMF bailout

The country had initially sought an $8bn bailout to address a long-running fiscal crisis

Pakistan's Prime Minster and former Cricket star Imran Khan has taken to social media to offer his tips for a successful match for the Pakistan national team. EPA
Pakistan's Prime Minster and former Cricket star Imran Khan has taken to social media to offer his tips for a successful match for the Pakistan national team. EPA

The International Monetary Fund on Sunday said it reached a preliminary agreement with Pakistan for a $6 billion (Dh22.04bn) bailout over the next three years to finance sweeping economic reforms.

Pakistan and the international lender reached a “staff level agreement” subject to approval by the IMF management and the executive board, said the fund's envoy, Ernesto Ramirez Rigo.

Mr Rigo said the IMF programme would support Pakistan’s strategy for “stronger and more balanced growth by reducing domestic and external imbalances, improving the business environment, strengthening institutions, increasing transparency and protecting social spending”.

Abdul Hafeez Shaikh, an economic adviser to Prime Minister Imran Khan, confirmed that his country had reached a preliminary deal with the IMF.

Pakistan had initially sought an $8bn bailout to address a long-running fiscal crisis and has held months of talks with the fund.

The US, which exerts major influence over the fund, has said it should not finance the tens of billions of dollars in loans that Pakistan has taken from China as part of Beijing’s worldwide Belt and Road Initiative.

It was not clear if the US would support the agreement announced on Sunday.

Pakistani authorities said they were in touch with Washington and were seeking its support.

Updated: May 13, 2019 09:31 AM

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