IMF approves last tranche of $3bn loan to Pakistan

Islamabad: Pakistan PM Shehbaz Sharif expressed optimism regarding release of IMF’s final $1.1 billion tranche of a $3 billion bailout to the country, saying it would bolster economic stability. Pakistan is now eyeing a new, longer and larger economic bailout package, but economists cautioned against the country’s continued reliance on overseas financial assistance, warning of potential dire consequences.
IMF approved the immediate release of the tranche following a key meeting of the global lender’s executive board in Washington. All board members favoured releasing the funds, except India, which abstained.
Pakistan has been reeling from a severe economic crisis for over two years. Last year, IMF had approved a 9-month standby arrangement with Pakistan “to support its economic stabilisation programme”. The IMF bailout proved important to save the country from default, the state broadcaster quoted the PM as saying.