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IMF’s bailout package released a $1 billion tranche to Pakistan

by Web Desk
September 27, 2024
in Top Stories
IMF's bailout package released a $1 billion tranche to Pakistan
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Islamabad: IMF has released an installment of one billion dollars under the bailout package after approving the extended fund program of 7 billion dollars for Pakistan.

The IMF says that the difficult business environment, weak governance and excessive state intervention hinder investment, while the new loan program is aimed at restoring macroeconomic stability, reforming public institutions, and improving public service delivery.

Pakistan’s economic growth rate reached 2.4 percent while inflation eased, but major problems remain, including a difficult business environment, weak governance, and a limited tax base.

In the declaration related to the meeting of the executive board of the international organization, it was stated that the interest rate on the program covering 37 months will be less than 5 percent. The new loan program aims to focus on restoring macroeconomic stability, reforming public institutions, improving public service delivery, developing infrastructure and combating the effects of climate change.

Continued financial support from development partners will be critical to the success of the program. Pakistan continued to implement the policy under the standby arrangement in 2023-24 and took important steps for economic stability. In fiscal year 2024, the growth rate reached 2.4 percent, due to agricultural activities, while inflation reached single digits. went

According to the IMF, appropriate fiscal and monetary policies have helped to keep the current trade deficit under control, allowing the exchange rate to improve. The decline in inflation is a reflection of the improvement in internal and external conditions. State Bank has cut the policy rate by 450 basis points since June, presenting a strong budget in June 2024.

Despite this, the country’s weaknesses and problems are serious, the difficult business environment, weak governance and excessive state interference hinder investment. MD Christina Georgieva congratulated the government and the people for the approval of the loan program, saying that the government is rich. It is helping the poor by taking taxes.

Pakistan’s economy is going in the right direction. After the approval of the loan, he said in a statement from Washington that the government of Pakistan has been helping the poor by taking taxes from the rich, while economic development is increasing and inflation is decreasing, Pakistan has made reforms due to which the economy Has improved. According to Finance Ministry sources, Pakistan has to implement the conditions under the loan program.

Tags: commissiongovernmentinternationalNationaltime line news
Web Desk

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