According to the International Monetary Fund (IMF) and the government, the board of the IMF authorised the seventh and eighth evaluations of Pakistan’s bailout programme, enabling for the flow of nearly $1.1 billion to the cash-strapped economy.
The IMF decided to add 720 million SDRs, or $940 million at the current exchange rate, to the program’s funding total and prolong the programme by one year.
According to the country’s planning minister, the funds will be a lifeline for the South Asian nation reeling from disastrous floods that have caused damage totaling at least $10 billion.
IMF Deputy Managing Director Antoinette Sayeh said in a statement that it is important to adhere to scheduled increases in fuel levies and energy tariffs “crucial,” given that Pakistan’s economy “has been hampered by unfavourable external circumstances.
These include “repercussions from the conflict in Ukraine, as well as domestic difficulties, such as those brought on by accommodating policies that led to uneven and imbalanced growth, “he observed
The fund’s statement made no mention of the flooding.
Pakistan’s economy is struggling with a big current account deficit and severe inflation, and its foreign exchange reserves have decreased to levels that only support a month’s worth of exports.
