IMF agrees on new $1.3 billion loan programme for Pakistan

IMF says Pakistan has made significant progress in restoring macroeconomic stability over past 18 months; the new deal would support Pakistan's efforts to mitigate and adapt to climate change

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The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan for a $1.3 billion loan package for a period of 28 months to support the country’s efforts to mitigate and adapt to climate change.

“Over the past 18 months, Pakistan has made significant progress in restoring macroeconomic stability. It is rebuilding confidence despite a challenging global environment,” IMF mission chief Nathan Porter said in a statement.

The new deal comes with an agreement on the first review of the ongoing $7 billion bailout programme as IMF-backed Pakistan’s progress in restoring macroeconomic stability has been solid, building confidence despite a challenging global environment.

According to government sources in the finance department, Pakistan has been able to show steady progress in terms of inflation with the range being maintained within one per cent to 1.5 per cent during March.

“This follows a slowdown to its lowest level in almost a decade in previous months,” maintained the monthly economic outlook report by the finance ministry.