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Pakistan is in talks with the International Monetary Fund (IMF) for new rapid standby aid of $2.5 billion as the current program expires on June 30, the Dawn newspaper reported on Wednesday, citing unidentified people.
The short-term arrangement — six to nine months — includes a $1.1 billion advance payment within the next 15 days, followed by two or three more reviews of up to $500 million each, according to the paper. She added that the plan would help the country transition to a new elected administration later this year.
The cash-strapped country is taking decisive steps in line with the Fund’s prescriptions to restore access to a $6.7 billion bailout program that has been delayed for more than six months. Islamabad has adjusted the country’s budget, raising taxes and energy prices to win the support of lenders.
This measure is one of two options being discussed between the Pakistani authorities and the Washington-based lender. The second option is an immediate disbursement of $1.1 billion under the existing program, which would essentially give up the remaining $1.4 billion of the government-approved quota. Executive Board of the International Monetary FundThe newspaper said.
The South Asian country is going through a severe economic crisis amid record inflation and interest rates. The money will help the country overcome a dollar crisis, ease supply shortages, and pull the economy out of crisis ahead of elections this year. Pakistan is one of the IMF’s largest clients with nearly two dozen bailouts since the 1950s.
The short-term arrangement — six to nine months — includes a $1.1 billion advance payment within the next 15 days, followed by two or three more reviews of up to $500 million each, according to the paper. She added that the plan would help the country transition to a new elected administration later this year.
The cash-strapped country is taking decisive steps in line with the Fund’s prescriptions to restore access to a $6.7 billion bailout program that has been delayed for more than six months. Islamabad has adjusted the country’s budget, raising taxes and energy prices to win the support of lenders.
This measure is one of two options being discussed between the Pakistani authorities and the Washington-based lender. The second option is an immediate disbursement of $1.1 billion under the existing program, which would essentially give up the remaining $1.4 billion of the government-approved quota. Executive Board of the International Monetary FundThe newspaper said.
The South Asian country is going through a severe economic crisis amid record inflation and interest rates. The money will help the country overcome a dollar crisis, ease supply shortages, and pull the economy out of crisis ahead of elections this year. Pakistan is one of the IMF’s largest clients with nearly two dozen bailouts since the 1950s.
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