Pakistan and IMF Agree on Release of $1.1 Billion from Bailout Package
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March 21, 2024
Pakistan and the International Monetary Fund (IMF) recently reached an agreement that’s pretty significant. They decided to share out $1.1 billion from a big $3 billion rescue plan. This money is super important for Pakistan because it helps them avoid a big financial mess and also lets them stick to their promises to pay back debts.
The IMF made this decision after talking a lot with the new government of Pakistan, which is led by Prime Minister Shehbaz Sharif. This approval from the IMF is like a final check on Pakistan’s plan to stabilize its money situation. But it’s not all done yet. They need the green light from the big bosses at the IMF before they can get the money. That’s expected to happen before April 11th.
Even though things are getting a bit better for Pakistan’s money, the IMF says there’s still a lot to do. They want Pakistan to make more changes to its policies to fix the money problems for good. Pakistan’s money situation isn’t in great shape. They owe a lot – more than $130 billion, to be exact. And they don’t have much saved up – only $8 billion. Plus, prices keep going up, even though it’s slowing down a bit. The value of their money compared to the US dollar has dropped by more than half in recent years.
The Finance Minister, Muhammad Aurangzeb, is thinking about asking the IMF for more help once this current deal is done. But economist Safiya Aftab warns that it won’t be easy. She says the IMF might ask for tough things like higher taxes and selling off government-owned businesses. Despite all the challenges ahead, Aftab says it’s really important for Pakistan to listen to what the IMF says. Even though it might make things tough for people in the short term, making these changes is the best way to keep Pakistan’s money stable in the long run.
