Pakistan's state bank coffers were further boosted by a $1 billion deposit from the United Arab Emirates. / Photo: Reuters Archive
The International Monetary Fund has approved a much-awaited $3 billion bailout for Pakistan, the global lender said, a move that's likely to save the impoverished nation from defaulting on its debt repayments. The IMF said its executive board approved an agreement to release the funds over a nine-month period to support Pakistan's economic stabilization program.
"The arrangement comes at a challenging economic juncture for Pakistan. A difficult external environment, devastating floods, and policy missteps have led to large fiscal and external deficits, rising inflation, and eroded reserve buffers" in the fiscal year 2023, the IMF said in a statement.