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Pakistan Secures Financial Assurances from China, Saudi Arabia, and UAE Ahead of New IMF Program
Pakistan has received substantial financial assurances from China, Saudi Arabia, and the UAE as part of a new IMF program, bolstering its economic recovery efforts.
ND
by News Desk
2024-09-27
Pakistan Secures Financial Assurances from China, Saudi Arabia, and UAE Ahead of New IMF Program

Pakistan has secured significant financial assurances from China, Saudi Arabia, and the United Arab Emirates as it embarks on a new program with the International Monetary Fund (IMF). This backing is expected to provide essential support beyond existing agreements concerning over $12 billion in debt owed to these nations.

 

IMF's Confirmation of Financial Support

During a recent conference call, Nathan Porter, the IMF head for Pakistan, confirmed the assurances from these key allies but refrained from disclosing specific figures. He emphasized that this financial support would be in addition to the rollover of existing debts, showcasing a robust commitment from Pakistan's partners.

 

New IMF Loan Agreement

The announcement comes on the heels of the IMF's Executive Board approving a new loan agreement of $7 billion for Pakistan, which will be disbursed over 37 months. This agreement mandates that Pakistan implement crucial policies and reforms aimed at enhancing macroeconomic stability.

 

Porter praised Pakistan's remarkable economic recovery since mid-2023, highlighting a significant reduction in inflation, a stable exchange rate, and a more than doubling of foreign reserves. He noted the positive outcomes of policy implementation but also warned of the challenges that lie ahead in achieving strong and sustainable growth.

 

Focus on Economic Policies

As part of the IMF program, Pakistan aims to maintain consistent monetary, fiscal, and exchange rate policies, increase tax revenues, and improve public expenditure. The country recorded its first primary budget surplus in 20 years last year, with current efforts aimed at elevating this surplus to 2 percent of its gross domestic product (GDP).

 

Future Prospects

With the support of its international partners and the IMF, Pakistan is poised to navigate its economic challenges effectively. The financial assurances from China, Saudi Arabia, and the UAE not only provide immediate relief but also signify the confidence these nations have in Pakistan’s economic recovery trajectory.
Tagged:

PakistanEconomy

EconomicRecovery

IMFProgram

FinancialAssurances
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