IMF approves $3 billion loan for Pakistan

The International Monetary Fund (IMF) has finally agreed to give loans to Pakistan, which is facing a major economic crisis. The global organization has approved a loan of three billion or 3 billion US dollars for Pakistan. News – Reuters and Geo News

The IMF’s board of directors approved the loan on Wednesday. About 1.2 billion or 1.2 billion dollars will be given to Pakistan in the first phase of the loan soon.

Pakistan had been negotiating with the IMF for a long time for a loan. After almost nine months, the IMF signed a preliminary agreement with Pakistan on June 30. Now with the approval of the IMF’s Board of Directors, Pakistan’s loan has been confirmed.

The country is going through severe economic crisis. This year, inflation has increased and prices of goods have almost doubled. There is volatility in the market due to the rise in prices of daily necessities such as onions, chicken, eggs, rice, cigarettes and fuel. With this loan, it is believed that the risk of defaulting on the sovereign debt of the country plagued by economic crisis will be freed.

Earlier, experts said that Pakistan needs money as soon as possible. The former deputy governor of the central bank, Murtaza Syed, told Reuters that Pakistan will have to go bankrupt if it does not get loans because the foreign exchange reserves have reached a critical level.

Pakistan’s Prime Minister Shahbaz Sharif then said that despite reluctance, Pakistan is being forced to accept IMF’s strict conditions to improve the country’s critical economic situation.

/hk/

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