After months of negotiations, Pakistan has secured a further $6bn. from the International Monetary Fund (IMF) in a bid to abate an economic meltdown. The “in principle” amount has been secured after a series of “bailouts” for the country and is still subject to final approval from the IMF´s management board. It is thought the funding would be drawn down over a three year period.
A spokesman for the IMF said Pakistan is facing a “challenging economic environment, with lacklustre growth, elevated inflation, high indebtedness, and a weak external position”. They went on say that the funding programme would support the authorities strategy for stronger growth by “improving the business environment, strengthening institutions, increasing transparency, and protecting social spending”.
IMF bailout funding is generally provided under strict conditions, and analysts warn that any fresh cash injection from the IMF could well harm Prime Minister Imran Khan‘s pledges to build a “welfare state”. Since his inauguration, Khan has been aggressively pursuing “assistance” from “friendly allies” but his calls have fallen on deaf ears.