IMF lends US$5.3 Billion to Pakistan to Boost Rupee
The International Monetary Fund approved Pakistan's US$5.3 billion loan. The money would be used to increase the country's low currency reserves. It would also aid in stabilizing the struggling economy. After the agreement on the loan, stocks, bonds and rupee climbed
The state offered a "very robust reform" plan to acquire the assistance, Ishaq Dar, Pakistan's Finance Minister stated at the joint conference with IMF in Islamabad yesterday. Subsequently, Jeffrey Franks, IMF's Pakistan mission leader said that the program credits needed final consent from the moneylender's board.
"The overall focus of the program is to boost economic growth," Franks said after negotiations between the two sides finalized. "There may be difficult decisions to get there but these will necessary to achieve a stable economy."
The Finance Minister said that the government wanted to borrow US$7.3 billion but the IMF only gave the minimum loan agreed which was US$5.3 billion. The request to increase the amount was still pending with the organization. The 36-month contract would include a 3% interest rate. It would be considered by the board in the first week of September, "subject to the timely completion of prior actions to be taken by the authorities," the lender said.