IMF approves $6 billion loan for Pakistan
The International Monetary Fund's (IMF) executive board has approved a three-year, $6 billion loan "to support Pakistan’s economic plan, which aims to return sustainable growth to the country’s economy and improve the standards of living," spokesperson Gerry Rice tweeted on Wednesday evening.
According to AFP, the IMF board has released $1bn to Pakistan immediately. The fund will review Pakistan's performance quarterly over 39 months, phasing release of the additional aid over time.
This is Pakistan's 13th IMF programme.
The finance minister also tweeted about the approval.
Islamabad will receive $2bn annually under an extended fund facility (EFF). According to the IMF, "The EFF provides assistance in support of comprehensive programmes that include policies of the scope and character required to correct structural imbalances over an extended period."
An IMF mission led by Ernesto Ramirez Rigo had visited Islamabad from April 29 to May 11 to discuss a bailout package.
Pakistani authorities and the IMF team had at the conclusion of the visit reached a staff level agreement over a 39-month EFF for about $6bn.
The agreement had been subject to approval by the IMF's executive board.
"The programme aims to support the [Pakistani] authorities’ strategy for stronger and more balanced growth by reducing domestic and external imbalances, improving the business environment, strengthening institutions, increasing transparency, and protecting social spending," the IMF had said in a statement attributed to Rigo.
Comments (123) Closed
YAY!!! Loans ...
Good news. Now work towards structural reforms, else after two years their will be another bailout.
Too late now.
Hope this money is spent on people of Pakistan in a transparent way.
Good news after having broken the back bones of poor because of price hike.
Yay... More loans !!
With their own employees in charge of the economics of this state; why not.
We obeyed the conditions from master. Now time for treat. Yay!!!!
Congratulations?
Finally a good news.
Who is next?
Congratulations Pakistan. Way to go forward. Bailout after bailout. May you need dozens more.
People shop for thousands ask for interest rate but for billions there is no info to the nation how much they would be indebted for this 6BLN
Tomorrow public holiday
More debt on a sinking ship.. But what else can the country do?
Gordon D. Walker
Canada
Congrats!
Another feather in Pakistans cap
Great news !
Interest free ?
Now that 'guR' is here, flies are bound to swarm right behind. Better safeguard your precious guR, keep it under cover and use it wisely for making profitable products for world markets to make profit.
Biggest achieve of current government
congratulations! Finally politicians can fill cash in their pockets. Shaikh rashid will be thrilled.
Good News and more good news to come in IK regime.
Bailout? Please! Just another set of economic dead weights...
Gordon D. Walker
Canada
IPLcricket 2019 version added 20 billion dollars to GDP.
Let's give America a kick in the teeth for letting us borrow the money.
I am surprised that the funds were release despite the FATF concerns.
Congrats Pakistan for another milestone.
The first CPEC payment will be made now.
ACHIEVEMENT !! :-D
Now Pakistani economy will run within specified parameters in turn stability and prosperity will prevail.
What a achievement!!!
Congratulations on this great success.
Congrats for the achievement..
Thanks to Nawaz's and Zardari's for reducing the nation to this extent....
Wow... What a "Lucky Day" for Pakistan...O man, "Great News" ... We got the loan, everything will be "OK" now... Thanks Mr. Prime Minister, credit goes to you... You are a man of your word...By the way, when you are committing suicide? Prime Minister Imran Khan you should keep your word to commit suicide rather than approaching the International Monetary Fund (IMF) for bailout packages. Shame on you sir!!!
Always remember: "The rich rule over the poor, and the borrower is slave to the lender."
Congratulations Pakistan by getting 6 billion welcome to billionaire debt country club. Naya and old Pakistan zindabad.
This is one bitter pill that we must swallow when our corrupt political leadership has failed the nation. This is, indeed, a sad day. The IMF's website is too effusive about the role this organzation plays in stabizing the global economy, I would venture to say that the IMF is in cahoots with international bankers and their goal is the make money. Any "relief" provided to a borrow is incidental to the aim to maximize the profits of said international bankers.
So basically, no one wants to lend to Pakistan anymore even with the high interest rate simply because Pakistan is too high a risk. Worst part is, the govt seems to have no plan on how to pay the creditors back. It is clutching at straws by asking the overseas Pakistanis to send money of Qurbani through official channels like that will plug the hole.
Dollar is coming down... Yayyyy!
Use in right way.
Had it been before 6 month then there would something to be cheered about. It already has lost its steam and damaged done r irreversible. Next try is to get some more dollars from WB and ADB.
IMF must stop this give away program and let the country return to the motherland... The Brits and Jinnah made a huge mistake to bring about the cesarean birth of what is jokingly called a nation!
Gordon D. Walker
Canada
Great news. We need this money to strengthen our economy.
Congratulations pti.
How many loans a country needs ???
That's a good news but 6 billion equal 9 billions as pay back the rupee is devalue against dollar
WOW!!! This is amazing. Congratulations!! Never knew I would say so many congrats to anyone let alone a nation for getting a "loan". But, it seems like such a good news and achievement for Pakistan, the way it is mentioned and advertised and shown by the nation, the people, media and specially the government. I wish I could have been in Pakistan when these loans come through, Would like to see great celebrations and fireworks and all. I really don't know what I'm missing but can only imagine.
Bankrupt Greece living beyond her means was made to prostrate and beg for IMF funds, implement economic reforms and austerity. But no such troubles for Pakistan.
Loans, loans and more loans. This government has already taken more than 10 Billion US Dollars in under one year. They will increase the loans by 40-50 Billion US Dollars once they will complete their term of 5 years.
one more loan . Happy for some days till loan is used up and then the search begins for another loan.
Celebration time in Pakistan.
Cheap. Country sold out to western central bankers for only 6 billion $.
Time for grand celebration..Great achievement of khan saheb...
in july again imf approved this loan. same thing is being announced how many times
Excellent. Good luck!
~rols
Congrats to Pak and Imran Khan for his brilliant leadership.
Giving a country money it has no hope of repaying is called influence peddaling...
Gordon D. Walker
Canada
Attest now start thinking of repayment.
Now what will Pakistan do with it? IMF will not you pay Chinese Loan Interests with it and nor it can go to ongoing evergoing thousands cut Project. Will inflation come down?
Congrats
Congratulation Pakistani citizens...New Era of Finance is on Rising...
It hurts to see our neighbor bowing to an west dominated organization for so little amount of money. It could habe been very different if we could omit the K-prism from our relationship and start afresh, especially in the area of bilateral trade.
Please populate terms.
"As said earlier as well: Any time there is a sign of something, mostly it's a loan.
But sadly, no where in civilian society is loan a good thing. What I have learnt about loan in my life so far is that ' a loan only attract a loan", and must be avoided.
CONGRATULATIONS!!
Excellent news.
Pakistan in agreement with IMF set certain amount for productivity increase. Make certain project are completed on time and individuals monitored not on take
Indeed a bad news for Pakistan! No guidelines on how to pay it off.
Congrats on the loan. Hope this will bring the economy out of the crisis.
good news. hope imf keeps approving more
If you are going to IMF 14th time then may be it's time for introspection and what wrong path you have chosen which brought a country to this situation.
Most of the people don't know that IMF is tha last resort for a country to avoid bankruptcy. So, when you have gone 14 times means you were bankrupt 14 times.
Isn't it the time for policy makers in pakistan to introspect? Where are the economists and planners?
With the sanction of IMF loan , default situation has averted. Creditability of Pakistan finances will be restored. Now other International financial institutions will also like to come on board. Time has come to do legislation and impliment certain decisions for the betterment of masses. Hopefully government will do crack down against benami account holders and properties. Efforts be made to further enhance tax base. Corruption at tax offices will be abolished to win the hearts of the public.
Congratulations. Is there a consolidated view of total loan of the country and a draft plan to pay interest plus principle?
Fantastic news! Way to go and improve the economy without any hardship to the commoner.
Yehhhhhh, free health cards for everyone,
Naya pakistan.. naya package.. yay!!
Loan is not be a news of happyness. But this time it is needed for economic prosperity. Bd, india and China three neibouring country have gained GDP growth rate more than 7. Now it is time for Pakistan.
Laws be formulated to promote ease of business. intervention of labour, social security, education cess and EOBI department be averted. All department can have access of people employed from data available from computer. Industrialists will be protected from Bhatta Mafia. Policies regarding close units will be formulated. Bank defaulted cases in priority will be decided in the banking courts. Banks will be allowed to sell the assets of defaulters . Operation of close units will employ labour.
Great Achievement For Pakistan...
Pakistan loves to be in this situation. That way, it strengthens its begging capabilities.
Cheers
That's nearly 1 TRILLION RUPEES.... Why not build a DAM now, and let Pakistan be self-sustainable in 5 years for eternity?
The IMF Board has approved the sanctioning of the $6 billion loan but is it also approved by the member countries esp. the US which can put the process on hold ?
Congratulations Pakistan! Let's hope that it's 31st time lucky! You never know!
This is amazing feat, very proud feeling at the moment. Congrats for the loan.
Congratulations!
Plz use it wisely and invest some of it in education.
Sharifs and Zardari have looted more than this amount. Get money from these two, and there will be no need for any loans.
Just as long as we don't forget; it has to be repaid with interest.
IK delivered
Good.
Party time!
What are the conditions and what more does common Pakistanis have to suffer?
Now Pakistani army will take a major chunk out of this $6 billion to buy arms!
Its a relief, hope we will be out of turmoil now, things would stabilize and USD would return to its correct value.
I hope pakistan use this money wisely and improve the situation in the country.
Yeeeesssss, got it.
Great. Now celebrate taking another loan. Taking loans have become a great achievement in Pakistan these days. I wonder how CPEC helps Pakistan when their economy has only gone bad as the CPEC grew.
Congratulations.Pakistan needed this loan seriously though its terms may be difficult for compliance.
We are literally never going to be free of debt. We can't even afford the interest payments on the old loans from the IMF and now more loans. I really hope I am wrong. Kindly put the Sharifs, Musharraf and Zardari in jail already. They drained the state funds and mismanaged the country. The many future generations will pay for their greed and corruption.
Celebrations!! Next collections trip at the Trump tower
The point to ponder for IK: What cost ordinary people of country have to pay just to get 6 billion dollars?
Proud to be a Pakistani!
Pakistan on its way to become powerful country now.
Congratulations to PTI and government. Sorry for the people of Pakistan but you deserve so as you elect such representatives again and again
Pay off part of Chinese loans with this money that will save a lot in interest!
Congratulations PM Imran Khan & his team. We know $6 bn is peanut, but it’s essential for Pak financial credibility, as we all know the ADB, WB, and other Financial Agencies weigh their lending after IMF . It’s OK. Now PM IK must direct FBR, M/O Finance to move ahead with caution.And make sure that imports reduced,exports enhanced,no tolerance for corruption,austerity in place, things will improve.
1 USD = PKR 200 coming soon. But now that the free money from USA has ended something good may actually come out of it as Pak leaders will now be held accountable by IMF.
Congrats
Congratulations...
Nothing to celebrate.
Doobtey ko Tinkey ka Sahara. Hope Now Khan will come back like Musharraf. If not then it is last Chance for sure. First year performance worst but can give excuse for previous government wrong doing.
This loan will only benefit the selected and powerful people not the poor
Loans, loans and more loans!
Getting deeper and deeper into debt! Need to be wise with where this money is being invested. Hopefully not into defence.
Had Imran has thought about country, Pakistan would have entered the program 9-10 month ago. And had brought the country to the path normalcy. But he choose his ego over the country. And that ego is also shattered since he entered the program accepting each and every condition.
And so begins the downfall of a great civilization...
Congratulations..loan is approved!! But the sum released immediately - $1 Bn is too small to make a short term impact..what about the rest of the requirement on external front?
Its 13 th time we are surrendering. Thank you armed forces. Hope the bungalows are spacious for you all with fresh air filled with our direct and indirect tax money
Are we ready to go through the hardship one last time for homeland's sake?
Good news Pakistan.