Pakistan Bags Preliminary Deal For USD 6 Billion IMF Bailout

Islamabad May 13: Pakistan government reached an agreement with the International Monetary Fund (IMF) for a bailout package of $6 billion, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh said on Sunday.

According to Dawn, Dr Shaikh while speaking on state-run PTV News said: "After months of discussions and negotiations, a staff-level agreement has been reached between Pakistan and the IMF."He disclosed that Pakistan, under the IMF programme, would receive assistance worth $6 billion over a period of three years.IMF Mission Chief for Pakistan Ernesto Ramirez Rigo was quoted in an IMF press release as saying: "The Pakistani authorities and the IMF team have reached a staff-level agreement on economic policies that could be supported by a 39-month Extended Fund Arrangement (EFF) for about US $6 billion."Dr Shaikh said IMF is an international institution who assists member countries in "economic difficulty". He further went on to say that Pakistan could not have bridged the financing gap of $12 billion, created by a weak economy, on its own. Debt-Ridden Pakistan Revives Economic Team To Get Financial Support From IMF, Sacks Former Chief of Nation's State Bank.

Pakistan Prime Minister Imran Khan on Friday had rejected the first draft for a bailout package after which the talks with International Monetary Fund (IMF) were still underway. Besides the assistance by IMF, Pakistan will receive additional funds worth nearly $2-3 billion from institutions like the Asian Development Bank and World Bank, the adviser informed.

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