Pakistan's Prime Minister announced on Thursday that the country has successfully met all the conditions set by the International Monetary Fund (IMF) to qualify for a new $7 billion loan aimed at bolstering its economy. The Prime Minister commended his finance team and advisers for their efforts in complying with the IMF's requirements, which are expected to be formally approved on September 25 by the IMF's board of executive directors.
The Prime Minister expressed gratitude to China for its assistance in securing the bailout, although specific details were not disclosed. The IMF had mandated Pakistan to broaden its tax base and eliminate energy subsidies, measures that have already been implemented by the government. However, this move has raised concerns among some Pakistanis who are struggling to cope with high energy bills.
In a statement released by Pakistan's Finance Ministry on Thursday, it was confirmed that all outstanding issues with the IMF have been resolved in an amicable manner. This development comes two months after the IMF announced a staff-level agreement with Pakistan for the new $7 billion loan deal.
Pakistan is currently grappling with a severe economic crisis, and the Prime Minister has expressed optimism that the country will be able to reduce its dependence on foreign loans in the future. If approved by the IMF's board of executive directors, the new loan deal is set to span 37 months.
