Pakistan PM Sharif Welcomes $7 Billion IMF Funding Deal

Pakistan's Prime Minister Shehbaz Sharif welcomed the International Monetary Fund's (IMF) approval of a $7 billion funding agreement for the country, his office announced on Wednesday.

Pakistan had been working to meet the IMF's“strict” conditions to complete the 37-month loan program agreed upon in July, which Sharif hopes will be the country's last.

The IMF stated that the new program will focus on“sound policies and reforms” to enhance macroeconomic stability and address structural challenges, with strong financial support from Pakistan's development and bilateral partners.

An immediate disbursement of approximately $1 billion is set to occur.

Sharif mentioned at the United Nations General Assembly that Pakistan met all IMF conditions with significant help from China and Saudi Arabia, though he did not elaborate on the nature of their assistance.

Pakistan has historically relied on loans from long-time allies and IMF programs to meet its external financing needs, including this latest agreement.

Despite protests from retailers and opposition parties over new tax measures, the government committed to increasing its tax revenue as part of IMF requirements.

Pakistan has faced recurring economic crises for decades, leading to 22 IMF bailouts since 1958. The latest crisis, marked by record inflation, pushed the country near default last year, but the IMF bailout has since provided some stability, with Moody's upgrading Pakistan's credit rating.

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