Pakistan moves closer to securing IMF loan as UAE pledges $1bn financing

Pakistan's finance minister claims staff-level agreement with IMF will be reached soon

Pakistan is reportedly close to securing a loan from the International Monetary Fund (IMF) after Saudi Arabia pledged $2 billion and the United Arab Emirates (UAE) is expected to provide a written guarantee for $1 billion financing to help the country avoid default.

The IMF has asked Pakistan to secure external financing from friendly countries and multilateral partners to fund its balance of payment gap for this fiscal year.

The country is facing one of its biggest economic crises in history, with high interest rates, record consumer prices, a dollar shortage, and supply chain disruptions leading to companies stopping production.

The IMF has cut its growth forecast for the country to 0.5% from the earlier estimate of 2%. The deal with the IMF will also unlock other financing avenues to help Pakistan shore up its foreign exchange reserves and steer out of a balance of payment crisis.

- Advertisement -


Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

Some brokerages pay their CEOs very well. But do their numbers...

Looking at any CEO’s salary in isolation is sort of pointless. It has to be contextualized against performance. We attempted to do exactly that