ALBAWABA - In a significant development, Pakistan, burdened by a staggering national debt of approximately $274 billion and facing a severe economic crisis, has successfully reached an agreement with the International Monetary Fund (IMF) on a stand-by arrangement worth $3 billion.
The announcement was made by Pakistan's Finance Minister, Ishaq Dar, who expressed his gratitude to Allah for this achievement.
Under the agreement, Pakistan and the IMF have agreed on a 9-month stand-by arrangement of $3 billion. Nathan Porter, the Head of the IMF Mission in Pakistan, confirmed the agreement, emphasizing the significance of this financial support. The approval of the IMF Executive Board, expected in mid-July, is required for the arrangement to come into effect.
The agreed stand-by arrangement surpasses Pakistan's expectations, as the country was anticipating the release of $2.5 billion from the previous $6.5 billion rescue package, which concluded recently. This new agreement aims to strengthen Pakistan's foreign reserves and pave the way for economic stability and sustainable growth.
Prime Minister Shahbaz Sharif took to Twitter to express his satisfaction with the agreement, emphasizing its positive impact on Pakistan's economic landscape. Sharif highlighted that this arrangement would enhance the country's foreign reserves, contribute to economic stability, and set the foundation for sustained economic growth.
With a population exceeding 230 million, Pakistan's national debt stands at around $274 billion, accounting for approximately 80% of its gross domestic product (GDP). This high debt burden has rendered the country vulnerable to economic shocks. The IMF's financial support through the stand-by arrangement aims to alleviate the economic challenges and provide a path towards recovery for Pakistan.
