Pakistan has reached a preliminary deal with the International Monetary Fund (IMF) of three billion dollars, to help stabilize its economy amidst its current crisis, the IMF said on Thursday.
The agreement, which has been stalled for months, is pending approval by the IMF’s executive board, which will be considering the request by mid-July, the IMF added.
The agreement will be giving Pakistan $220 million in funding, enable additional financing from creditors, and reduce the risk of default, with the halted economic growth and high inflation.
“The new Stand-by Arrangement (SBA) would provide a policy anchor and a framework for financial support from multilateral and bilateral partners in the period ahead,” the IMF stated.
Pakistan has been facing multiple crises, including the recent catastrophic floods and economic turmoil, which caused financial problems for Pakistani people and made them unable to afford food, fuel, and medicines.
The loan has been halted for a while due to political turmoil, including the arrest of former Prime Minister Imran Khan over corruption charges that sparked protests.
