Major Relief As Cash-Strapped Pakistan and IMF Reach Preliminary Agreement Worth USD 3 Billion

International

oi-Madhuri Adnal

Pakistan and the International Monetary Fund (IMF) have reached a preliminary agreement on a $3 billion bailout package that could help stabilize the country’s economy and avert a sovereign default.

The deal, which is subject to approval by the IMF’s executive board, would provide Pakistan with much-needed access to foreign exchange reserves and help to reduce the country’s budget deficit.

The agreement comes after months of negotiations between the IMF and the Pakistani government. The IMF had been reluctant to approve a bailout package until Pakistan took steps to address its economic problems, such as reducing its budget deficit and increasing its tax revenues.

The Pakistani government has taken a number of steps in recent months to meet the IMF’s demands. These include raising taxes, reducing government spending, and increasing the interest rate.

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The IMF has welcomed the Pakistani government’s efforts and said that the preliminary agreement is a “significant step forward” in the bailout process. The IMF’s executive board is expected to consider the request for a bailout package by mid-July.

If the bailout package is approved, it would provide Pakistan with much-needed breathing room to implement its economic reforms. The reforms are aimed at reducing the country’s budget deficit, increasing its exports, and creating jobs.

The IMF bailout package is also expected to help to stabilize the Pakistani rupee, which has been under pressure in recent months. The rupee has lost about a third of its value against the US dollar since the beginning of the year.

The preliminary agreement between Pakistan and the IMF is a positive development for the country’s economy. However, it is important to note that the bailout package is not a cure-all for Pakistan’s economic problems. The Pakistani government will need to continue to implement its economic reforms in order to achieve long-term stability.