Pakistan is on the verge of starvation, yet why was the IMF kind, gave a loan of so many billion dollars?

IMF Approve Loan To Pakistan: The International Monetary Fund (IMF) has approved a new loan assistance of about $ 1.2 billion to Pakistan under bilateral arrangement. This loan assistance clearly shows that the country has maintained stability despite the devastating floods. Pakistani newspaper ‘Dawn’ reported in a report on Tuesday that the IMF Executive Board of Directors gave this approval in its meeting held in Washington on Monday under the dual ‘track bailout’, 37-month Extended Fund Facility (EFF) and climate-focused Sustainable Stability Facility (RSF).

Pakistan, which is facing cash crisis, is currently in the 24th program of IMF. Under this, last year it was agreed to provide assistance of seven billion dollars over a period of 39 months. The news said that under the recent approval, Pakistan is allowed to withdraw one billion dollars under EFF and $200 million under RSF.

It is important for Pakistan to maintain economic stability

Nigel Clarke, Deputy Managing Director and acting head of the IMF, said in the statement that in view of the uncertain global environment, Pakistan needs a comprehensive economic stability There is a need to maintain prudent policies to further strengthen it. At the same time, there is a need to accelerate the reforms required to achieve strong, private sector-led and sustainable medium-term growth.

Islamabad officials described the approval as a sign of confidence in Pakistan’s reform efforts and macroeconomic management, the newspaper reported. He also stressed that the real test will be to translate these commitments into concrete economic reforms.

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IMF has expressed dissatisfaction before this

Let us tell you that earlier in the month of November, IMF Pakistan’s poor financial managementexpressed dissatisfaction with cash monitoring and accountability for public resource allocation and advised reducing personal and political misuse of taxpayers’ money. However, the recent approval is expected to provide major relief to Pakistan on the economic front.