IMF reaches preliminary deal with Pakistan on $6 billion bailout, #IMF #achieved #tentative #deal #Pakistan #billion #bailout Welcome to OLASMEDIA TV NEWSThis is what we have for you today:
ISLAMABAD – The International Monetary Fund said on Thursday it has reached a tentative agreement with Pakistan to revive a $6 billion rescue package for this impoverished, Muslim-majority country that has been hit by a severe economic crisis since last year.
Pakistan and the IMF originally signed the accord in 2019, but the release of a tranche of just over $1 billion had been delayed since earlier this year. At the time, the IMF expressed concern over Pakistan’s compliance with the terms of the bailout under former Prime Minister Imran Khan. Lawmakers ousted Khan in a no-confidence vote in April.
Under newly elected Prime Minister Shehbaz Sharif, the government has been in talks with the IMF since May to avoid a bankruptcy like the one in Sri Lanka.
“The agreement with the Fund has paved the way to get the country out of economic difficulties,” Sharif said. wrote on Twitter.
In recent weeks, the Pakistani government has imposed additional taxes and cut subsidies on fuel, electricity and natural gas to meet IMF requirements. That made the government very unpopular, but according to Sharif the measures were necessary.
In a pronunciation On Thursday, the fund said it has reached “a personnel-level agreement (SLA) with Pakistani authorities.” It added that the deal is “subject to approval by the IMF’s board of directors.”
It said Pakistan is eligible for a crucial tranche of about $1.17 billion.
According to the statement, the IMF will also increase the value of the bailout from $6 billion to $7 billion, subject to approval from the IMF board, which is usually considered a formality.
Finance Minister Miftah Ismail accused Khan of creating a Sri Lanka-like situation in Pakistan and claimed that the deposed prime minister deliberately violated the IMF’s terms in order to remain popular.
In a video message on Thursday, Sharif announced that he would cut fuel and diesel prices by up to 15 percent, a move he said was made possible by the reduction in oil prices in the international market.
Analysts say the revival of the IMF bailout will help the government overcome the economic crisis, as the release of the fund’s loan will encourage other international financial institutions to do business with Pakistan.
Authorities say Sharif’s government has also approached Washington for help in reviving the IMF’s bailout. Since his ouster, Khan has repeatedly claimed that his government was overthrown under a US plot, an accusation Washington denies.