ISLAMABAD: Pakistan could get temporary relief for its ballooning foreign debt with a new stand-by arrangement worth US$3 billion announced by the IMF in Washington on Thursday .
The economy has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt, while months of political chaos have scared off potential foreign investment. Inflation has rocketed, the rupee has plummeted and the country can no longer afford imports, causing a severe decline in industrial output.
"I am pleased to announce that the IMF team has reached a staff-level agreement with the Pakistani authorities on a nine-month standby arrangement in the amount of SDR2,250 million ," said IMF official Nathan Porter in a statement.Pakistan cenbank leaves key rate unchanged, signals tightening pausePakistan's negotiations with the IMF for the last tranche of a US$6.
That package expires on Friday, and the new agreement builds on the IMF's efforts under the previous deal, Porter said.
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