“IMF Approves $7 Billion Loan for Cash-Strapped Pakistan, Sharif Declares ‘Last One’… Again”

Pakistan has secured yet another loan from the International Monetary Fund (IMF), as the global financial body approved a new $7 billion package for the country. The loan will be distributed in installments over the next 37 months, aimed at providing relief to Pakistan’s faltering economy.

 

 

This marks the 25th time Pakistan has turned to the IMF since 1958, and the sixth time the country has received funds under the Extended Fund Facility (EFF) program. According to officials, Pakistan will pay an interest rate of around 5% on the loan, which was confirmed by the Ministry of Finance.

 

 

 

Prime Minister Shehbaz Sharif welcomed the IMF’s decision, stating that his government had been in negotiations with the IMF since June. Sharif thanked IMF Managing Director Kristalina Georgieva for approving the loan, calling it a necessary step for Pakistan’s recovery. He reiterated that this would be the country’s final IMF program, a promise he also made when the 24th loan was approved in 2023.

 

 

The new loan approval comes two months after a staff-level agreement was reached between the IMF and Pakistan. Officials said the loan was finalised after Pakistan fulfilled all conditions set by the IMF. For decades, Pakistan has relied on IMF loans to stabilize its economy during financial crises.

 

 

(With inputs from agencies)