Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Good Fortune trailer
    Videos

    First Trailer for Aziz Ansari’s Good Fortune, Starring Keanu Reeves

    May 29, 2025 2 Min Read
    Last of Us Season 2
    Videos

    ‘The Last of Us’ Season 2 Premieres Date What to Expect From HBO’s Hit Series

    April 13, 2025 2 Min Read
    Disney Snow White box office
    Videos

    Snow White Teaser Drops: Gal Gadot and Rachel Zegler Shine

    February 22, 2025 1 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: IMF Finalizes $1.1 Billion Loan Disbursement Ending Pakistan’s Second Bailout Package
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
IMF Pakistan Bailout
PhotoNews Pakistan > Business > IMF Finalizes $1.1 Billion Loan Disbursement Ending Pakistan’s Second Bailout Package
Business

IMF Finalizes $1.1 Billion Loan Disbursement Ending Pakistan’s Second Bailout Package

Web Desk
By Web Desk Published April 30, 2024 3 Min Read
Share
IMF Approves Final $1.1 Billion Tranche. Photo: The News Daily (X)
SHARE

On Monday, the IMF authorized the final $1.1 billion loan instalment, concluding the second bailout package in eight years amidst soaring inflation and economic deceleration.

The IMF Executive Board ratified the second review of the $3 billion Stand-By Arrangement (SBA), confirmed by the finance ministry, facilitating the release of this last tranche.

IMF okays release of final $1.1bn SBA tranche
The Executive Board of the International Monetary Fund (IMF) on Monday approved the immediate disbursement of approximately $1.1 billion to Pakistan.#news #pakistan #investify https://t.co/l7TUJHbUK3

— Investify Pakistan (@investifypk) April 30, 2024

Endorsing Pakistan’s quest for another bailout, the IMF aims to ensure economic stabilization and enhance structural reforms. This approval followed shortly after Prime Minister Shehbaz Sharif described the nation’s debt situation as perilous at the World Economic Forum in Riyadh.

In June 2023, Shehbaz and key Pakistani financial officials secured this agreement in discussions with IMF Managing Director Kristalina Georgieva.

This marks the second completed bailout in eight years. After successfully executing a $6 billion program from 2013-16, Pakistan sought another unsuccessful bailout in 2019.

In July, Pakistan entered a nine-month $3 billion SBA to stabilize the economy. While it managed the current account deficit, the budget deficit surged to an expected 7.4% of GDP, according to the IMF.

The SBA led to increased taxes and significant rises in fuel, gas, and electricity prices. Despite reduced inflation projections, the State Bank of Pakistan lost autonomy and could not lower interest rates.

The IMF should now prioritize economic growth to combat a 40% poverty rate, with 10 million Pakistanis at risk of further impoverishment.

Pakistan assured the IMF of continued adjustments in power and gas tariffs, aiming to avoid debt accumulation in FY24 while safeguarding the vulnerable.

However, electricity and gas price hikes continued under the SBA. Despite commitments to cap circular debt, it exceeded agreed levels, prompting planned reductions through subsidies and tariff increases.

Under the SBA, Pakistan pledged a primary budget surplus of 0.4% of GDP, a target likely missed, according to a recent World Bank report.

#IMF approves 1.1 billion dollars tranche for #Pakistan's bailout package!#SamaaTV pic.twitter.com/QK8IVAMjaV

— SAMAA TV (@SAMAATV) April 30, 2024

Despite the IMF program, inadequate foreign debt inflows forced the central bank to buy over $5 billion from the market to stabilize reserves. Credit rating agencies did not upgrade Pakistan’s ratings, deterring private foreign lenders.

Post-review, the IMF recognized improvements in Pakistan’s economic and financial conditions, attributing it to sound policy management and resumed partner inflows. The government targets a 3.5% GDP growth and 21% inflation for the fiscal year, though actual projections suggest 2% growth and 25% inflation.

A key achievement under the IMF deal was reducing the current account deficit, which was better than expected by limiting imports. Nonetheless, exports lagged, and remittances faced challenges.

Pakistan is considering a successor medium-term EEF program to address fiscal challenges and foster sustainable, inclusive growth.

TAGGED:FeaturedIMFPak­istan
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

burj khalifa

Dubai’s Next Mega-Project Could Surpass Burj Khalifa

Oscar Pistorius

Oscar Pistorius Returns to Competition 12 Years After Reeva Steenkamp’s Murder

Garena Free Fire Max codes

Garena Free Fire Max Redeem Codes: Are They Worth the Hype in 2025?

Sydney Sweeney at Echo Valley Premiere

Sydney Sweeney Stuns at Echo Valley Premiere, Navigates Post-Breakup Journey

Stephen A. Smith

Stephen A. Smith Under Fire for Spreading False Brittney Griner Quote

Post Archives

More Popular from Photonews

Spain vs Portugal Nations League 2025 match
Sports

Spain Beats France in Thrilling Nations League Semi-Final, Advances to Face Portugal

3 Min Read
Kylie Jenner boob job 2025
Entertainment

Kylie Jenner’s Boob Job Reveal Drives Surge in Requests for Dr. Garth Fisher

2 Min Read
Musk vs Trump feud
Blog

Trump and Musk’s Explosive Feud: From Allies to Enemies Over Tax Bill

3 Min Read
Business

Pakistan Secures IMF Income Tax Relief for Salaried Class

Pakistan has reached an agreement in its budget negotiations with the International Monetary Fund (IMF), achieving…

June 3, 2025
Entertainment

Meghan Markle Faces Backlash Over Alleged Fake Garden Harvest Post

Meghan Markle shared an Instagram post via her “As Ever” account, showcasing a basket of “fresh”…

May 31, 2025
Pakistan

Pakistan and Turkiye Capture Senior Daesh Operative in Joint Operation

On June 1, 2025, Pakistan’s Inter-Services Intelligence (ISI) and Turkiye’s National Intelligence Organisation (MIT) captured senior…

June 1, 2025
Pakistan

17-Year-Old TikToker Sana Yousaf Shot Dead in Islamabad

On June 2, 2025, Sana Yousaf, a 17-year-old TikToker from Chitral, was shot and killed inside…

June 2, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?