The Internationl Monetary Fund Executive board approved a three year 6 billion loan package for Pakistan . It has been asserted that the IMF will be allowing immediate disbursement of around $1 billion.
Pakistan is facing significant economic challenges on the back of large fiscal and financial needs and weak and unbalanced growth,” IMF First Deputy Managing Director David Lipton said in a statement.
The program will require “decisive fiscal consolidation” and a multi-year plan to strengthen Pakistan’s notoriously weak tax system as well as large scale reforms that are likely to pile pressure on the government of Prime Minister Imran Khan
However, despite securing billions of dollars in loans from friendly countries including China, Saudi Arabia and the United Arab Emirates, mounting economic headwinds forced his government to turn to the fund.
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