Pakistan secures $6bn IMF funding

World Monday 13/May/2019 10:50 AM
By: Times News Service
Pakistan secures $6bn IMF funding

Muscat: Pakistan is working towards securing $6bn in funding from the International Monetary Fund (IMF).

The funding, yet to be approved by the IMF management, would be provided over three years.

The IMF, in a statement issued on Sunday, said, “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. This agreement is subject to IMF management approval and to approval by the Executive Board, subject to the timely implementation of prior actions and confirmation of international partners’ financial commitments.”

“Pakistan is facing a challenging economic environment, with lackluster growth, elevated inflation, high indebtedness, and a weak external position,” the statement said.

The IMF said that the funding program would help Pakistan implement its strategy for stronger and more balanced growth. "The program aims to support the authorities’ 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."

Prime Minister Imran Khan is pursuing a strategy to aggressively seek help from friendly countries in order to reduce the size of the IMF assistance.

According to IMF predictions, Pakistan’s economic growth will slow to 2.9% this fiscal year.