IMF Reaches Agreement with Pakistan to Lend $2 Billion
Sudan Events – Agencies
The International Monetary Fund (IMF) has announced that it has reached a preliminary agreement with the Pakistani government to provide two new loans totaling $2 billion. This support aims to help the country rebuild its fragile economy and strengthen its ability to adapt to climate change.
According to an IMF statement, the agreement includes a disbursement of approximately $1 billion as the second installment of a previous $7 billion bailout package agreed upon in 2023.
Additionally, the IMF has approved a new agreement under the “Resilience and Sustainability Program,” which will grant Pakistan access to an additional $1.3 billion over a period of 28 months.
Bloomberg reported that the Karachi Stock Exchange’s KSE-100 index recorded its highest gains in three weeks, closing up 0.9% on Wednesday following the announcement.
The value of Pakistan’s dollar bonds also increased, with the yield on 2029 bonds reaching its highest level in over a month.
Nathan Porter, the IMF’s mission chief to Pakistan, said, “Pakistan has made significant progress in restoring macroeconomic stability and building confidence despite challenging global conditions.”
