IMF approves $3bn bailout for Pakistan
The International Monetary Fund's (IMF) board approved a 3 billion US dollar bailout programme for Pakistan on Wednesday, the lender said, which will immediately disburse about 1.2 billion dollar to help the South Asian country.
Pakistan and the IMF reached a staff level agreement previous month, securing much-needed funding for the cash-starved nation.
The IMF board's approval was needed before disbursing the first tranche of money, with the rest to arrive later in instalments.
'The Executive Board of the IMF approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR2,250 million (about 3 billion dollar, or 111 percent of quota) to support the authorities' economic stabilization program,' the IMF said in a statement.
It added the arrangement comes at a challenging economic juncture for Pakistan. A difficult external environment, devastating floods and policy missteps have led to large financial and external deficits, rising inflation and eroded reserve buffers in FY23.
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