The Executive Board meeting of the international Monetary Fund (IMF) is going to be held on 9 May. In this, the staff level agreement of 1.3 billion dollars with pakistan will be considered, which is part of the ongoing 37-month bailout program with Pakistan.
First review of this 37-month deal on 9 May
Let us tell you that in July 2024, pakistan had made a deal of 7 billion dollars with IMF. There are six reviews of this 37-month deal. Its second review is to be done on 9 May. If it is approved, then pakistan will be given an installment of 1 billion dollars.
(This deal is very important for pakistan because inflation is at its peak in the country, foreign exchange reserves have decreased, the stock market is also continuously declining. Earlier in march, a 28-month staff-level deal was agreed between the IMF and pakistan, which was aimed at supporting Pakistan's efforts to reduce and deal with the impact of climate change.
Help to improve the economic situation
When the IMF team visited pakistan in march under the 37-month bailout program, it was found that pakistan has taken many measures for economic reform such as keeping interest rates high to control inflation, improvements were found in the energy sector. Bailout is actually a way of providing financial help to a country facing economic danger so that its economic situation can be improved.
If the Executive Board approves this time, pakistan will get an amount of $ 1 billion under the Extended Fund Facility (EFF). With this, the total distribution under this program will be $ 2 billion. Earlier in september The first tranche of $1.03 billion was given in 2024. pakistan has been a member of the IMF since 1950 and has approached the IMF 24 times to reduce dependence on imports and due to economic instability in the country.
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