IMF on Wednesday consent A loan of $7 billion (around €6.4 billion) to Pakistan, to help the country overcome the very difficult economic crisis that has been going on for years. The International Monetary Fund, an international organization made up of the governments of 190 countries, reached an agreement with the government of Pakistan last July, but the approval of the Fund’s Board of Directors is still required. The amount will be distributed over the next 37 months.
The agreement was expected to be approved in August, but was postponed for a few weeks. This was because it was not certain whether Pakistan would be able to implement some reforms. In fact, the IMF gives loans to countries that are in serious crises or are close to default, that is, a situation in which the country can no longer repay its debts, but in return it requires implementing structural economic reforms that allow for increased government revenues. To repay the debts. These reforms often fall within the scope of austerity economic policies.
The country is going through one of Asia’s worst economic crises in years, and last year it was saved from default by a $3 billion short-term loan from the International Monetary Fund. The situation has improved since then, but the country still needs structural reforms to allow it to continue repaying its debt.
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