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IMF Considers A $6 Billion Bailout for Pakistan

KARACHI – The International Monetary Fund (IMF) Board is due to meet on Wednesday (Today) in Washington to consider a $6 billion “Expanded Financing Facility” for Pakistan, Pakistani Media reported Wednesday.
Pakistan and the IMF have already signed the staff agreement on May 12th.
Sources close to the case told the media that Pakistan has adopted a strict monetary and fiscal policy, based on all conditions of the global lender, to ensure a three-year bailout.
The bailout will help Pakistan pay its external debt, recover its budget deficit, maintain its foreign exchange reserves at the equivalent of three months of imports, and curb further devaluation of the rupee.
A few days ago, the Economic Coordination Committee (ECC) approved a significant increase in natural gas prices for domestic consumers, which was one of the conditions of the global lender to secure its bailout.
According to analysts, the financial support provided by the “friendly” countries has not proved sufficient to allow the government to recover from the current financial crisis.
The Pakistani Minister of State for Finance, Muhammad Hammad Azhar, said that the doors of the international market would open when the loan agreement was signed with the IMF.
In a conversation with a private news channel, he said the government would meet the tax target set for the next fiscal year.
Regarding the government’s amnesty plan, he said the response was very good and a lot of people benefited from it.
He said a program was being developed with the Asian Development Bank, in which a state-of-the-art transit and freight facility would be set up at the Torkham and Chaman borders.
“A road in Central Asia leading to Gwadar will open in the coming months,” he added.
(Sahar News Monitoring Desk)

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