[ad_1]
Pakistan has reached a staff-level agreement with the International Monetary Fund to resume its loan program, according to a government official familiar with the matter.
A $1.2 billion disbursement is expected in August after the IMF’s management gives final approval, the person said, asking not to be identified before a formal announcement. Representatives for the IMF in Pakistan and the nation’s finance ministry didn’t reply to emails seeking comment.
The disbursal would offer relief to the South Asian nation, whose foreign-exchange reserves can cover less than two months of imports. Inflation has accelerated to a 13-year-high. Pakistan has raised electricity tariffs and almost doubled diesel pump prices over the past two months to meet IMF conditions.
The Washington-based lender has also agreed to increase the loan program size by $1 billion — taking it to a total $7 billion — and extend it through June 2023, the person said.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
