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Pakistan says the IMF has approved a $7 billion loan

Pakistani officials say the executive board of the International Fund has approved a new $7 billion loan for the country

Via AP news wire
Thursday 26 September 2024 02:49 BST
UN General Assembly
UN General Assembly

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The executive board of the International Monetary Fund has approved a new $7 billion loan for cash-strapped Pakistan, authorities said Wednesday, more than two months after the two sides said they had reached an agreement.

The loan — which Islamabad will receive in installments over 37 months — is aimed at boosting Pakistan's ailing economy, officials added.

Prime Minister Shehbaz Sharif in a statement hailed the deal that his team had been negotiating with the IMF since June. He thanked Kristalina Georgieva, the head of the IMF and her team, for the approval.

Islamabad expects to receive the first installment of the loan soon, though its exact date was not immediately known.

The development comes more than two months after the IMF reached a staff-level agreement with Pakistan for the new loan. It also came a day after officials said the global lender's executive board would approve the loan on Wednesday, adding that Pakistan had met all the conditions set by the lender.

Pakistan for decades has been relying on IMF loans to meet its economic needs.

Sharif thanked China and other friendly countries for facilitating Pakistan's deal with the IMF.

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