Pakistan gets $1.16B bailout package from IMF

ISLAMABAD

Pakistan has received $1.16 billion from the International Monetary Fund (IMF) under its bailout package, the country’s central bank confirmed.

“This will help improve SBP (State Bank of Pakistan’s) foreign exchange reserves and will also facilitate the realization of other planned inflows from multilateral and bilateral sources," the bank said in a statement issued on Wednesday night.

On Monday, the IMF approved the release of a long-stalled $1.17 billion tranche of its bailout package for the cash-strapped South Asian country.

The development came after Islamabad agreed to fulfill some key IMF demands, including withdrawal of subsidies on electricity and petroleum, despite public outcry.

In 2019, the IMF agreed on a $6 billion bailout package to prop up the country’s sputtering economy.

The assistance is seen as crucial for Pakistan, which is currently struggling to cope with massive financial and human losses caused by a devastating spell of rains and floods.

The latest official data shows nearly 1,200 people have been killed and over 33 million affected across the country since June in what officials have termed a “climate catastrophe.”

According to economists, Pakistan will need more loans and assistance from other countries and lenders to overcome the spiraling economic and humanitarian crises.