The IMF released $ 1 billion to Pakistan immediately and released a statement in which it aims to support the authorities economic reform program and it will reduce the economic deficiencies and generate balanced and sustainable growth.
IMF will review Pakistan’s performance quarterly and it will continue till 39 months phasing release of additional aid over time.
This is the IMF 13th monetary fund program. The government of Pakistan has agreed on the loan program and announced to slash military and civil expenditures and government substantially raise revenues to stem yawning and fiscal deficit and the government will collect 5.5 trillion rupees in taxes.
Government of Pakistan will receive $2 billion annually under Extended Funded Facility.
The extended Funded Facility provides assistance in support of comprehensive programmes and includes policies which will stable the imbalances over an extended period.
Ernesto Ramirez Rigo led the delegation and visited Islamabad from April 29 to 11 May.
The agreement was subjected to be approved by the IMF executive board.
The lack of dollar in the open market causing the country devaluations of the rupee, inflation in the country as well as increasing utility bills costs, while tax collection has a long challenge for authorities.
Pakistan is facing the worst economic condition with low growth and inflation and external debts.
It will improve the business environment, strengthening institutions, increasing transparency and protecting social spending.