Web Desk (LTN NEWs): Following the reinstatement of the International Monetary Fund (IMF) program, Prime Minister Shehbaz Sharif stated Pakistan will need to “work hard” for self-sufficiency and encouraged structural reforms.
The renewal of the IMF program was “essential” to the economy, according to Prime Minister Shehbaz. However, the IMF agreement’s economic stability is only the beginning and “not a goal in itself,” he added.
“Pakistan must break free from its economic shackles, which can only be accomplished through fundamental reforms.”
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On Monday, the IMF approved a $1.1 billion tranche for Pakistan and restarted the country’s bailout program after a six-month break, putting an end to the uncertainty that had grown over the previous three days as a result of Pakistani maneuvering.
The global lender also approved a $0.5 billion loan increase and extended the debt’s maturity date to June 2023. The program’s size has been increased to SDR4.988 billion as a result of the augmentation, which is equivalent to 245.6% of Pakistan’s quota.
The board also waived the restrictions Pakistan failed to meet between January and June 2022. In retaliation for the case against Imran Khan under the Anti-Terrorism Act, the PTI attempted to derail the agreement by convincing the governments of Punjab and Khyber-Pakhtunkhwa to withdraw their pledges to the IMF program.
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The disbursement would be increased to $3.9 billion with the new approval, leaving a balance of $2.6 billion to be disbursed until June of next year.
The next IMF review will be in November to analyze the country’s economic performance from July to September 2022.
The PM further stated that the resumption of the IMF program is a significant step toward reviving Pakistan’s economy and the outcome of a “great team effort.”
