IMF to release second tranche of $6 billion Pakistan loan package
The International Monetary Fund (IMF) announced on Friday that it would release the second portion of financial assistance to Pakistan. In April, the IMF agreed to the 13th bailout program for Pakistan amid a worsening economy and the financial decline of over 208 million people. The total financial support that Pakistan is projected to receive is $6 billion, which aims to restore economic stability as fiscal deficits in Pakistan are narrowing. The IMF reported that although Pakistan’s growth remains slow, it is positive.
Amid inflation, domestic security issues, and other structural economic challenges, many analysts claim that the IMF bailout was inevitable while Pakistan received short-term financial support from Saudi Arabia and China. While the economic state of Pakistan remains largely unchanged since April when the program was approved, inflation is projected to decline in the 2020 fiscal year.