Pak bags preliminary deal for $6Bn IMF bailout

Pakistan government reached an agreement with the International Monetary Fund (IMF) for a bailout package of $6 billion, Adviser to Prime Minister on Finance, Revenue and Economic Affairs Dr Abdul Hafeez Shaikh said on Sunday.

According to Dawn, Dr Shaikh while speaking on state-run PTV News said: "After months of discussions and negotiations, a staff-level agreement has been reached between Pakistan and the IMF."

He disclosed that Pakistan, under the IMF programme, would receive assistance worth $6 billion over a period of three years.

IMF Mission Chief for Pakistan Ernesto Ramirez Rigo was quoted in an IMF press release as saying: "The Pakistani authorities and the IMF team have reached a staff-level agreement on economic policies that could be supported by a 39-month Extended Fund Arrangement (EFF) for about US $6 billion."

Dr Shaikh said IMF is an international institution who assists member countries in "economic difficulty". He further went on to say that Pakistan could not have bridged the financing gap of $12 billion, created by a weak economy, on its own.

Pakistan Prime Minister Imran Khan on Friday had rejected the first draft for a bailout package after which the talks with International Monetary Fund (IMF) were still underway.

Besides the assistance by IMF, Pakistan will receive additional funds worth nearly $2-3 billion from institutions like the Asian Development Bank and World Bank, the adviser informed.