IMF approves $7bn loan package for Pakistan

Washington: The International Monetary Fund (IMF) has approved a $7 billion loan programme for Pakistan. The approval came at the meeting of the executive board of the global lender.

The loan programme, which is dubbed a bail-out package, will comprise 37 months. Pakistan is expected to receive its first tranche of $1.1 billion by September 30, according to sources.

Following the approval of the loan program, a second tranche is anticipated within the same fiscal year, with the IMF providing the loan at an interest rate below 5%.

The Extended Fund Facility loan agreement between Pakistan and the IMF was finalized on July 12.

With this approval, Pakistan's economic outlook and foreign exchange reserves are expected to improve, easing the pressure of payments on the country.

Earlier, Prime Minister Shehbaz Sharif, after meeting with Turkish President Tayyip Erdogan, mentioned that Pakistan had fulfilled the IMF’s strict conditions and expressed hope for financial assistance to stabilize the nation's economy.