Washington DC, Sep 19: The International Monetary Fund (IMF) has announced on Wednesday it would renew a $6 billion worth bailout package provided to Pakistan in order to assist the nation to reinstate a sustainable and inclusive growth of its plunging economy.
The IMF, in a video posted on its official Twitter handle, said cash-strapped Pakistan’s growth was undermined by lack of reforms, high cost to purchase a rupee, and large deficits in the past.
— IMF (@IMFNews) September 18, 2019
The global money lender agency further said: “To restore strong and sustainable growth, Pakistan has developed a bold 3-year program to first, allow the market to drive a fair value of the rupee helping to restore competitiveness and support exports; second, reducing debt by ensuring that more people pay taxes and the rich pay their fair share; and third, protecting vulnerable groups by increasing spending on healthcare and education.”
According to news reports, the agency stated the loan would additionally boost reforms to encourage investments to assist firms to thrive and generate jobs. It wrote on Twitter, “This will help Pakistan’s economy reach its full potential.”
On Monday, a team of eight-member IMF delegation arrived in Islamabad to review the nation’s economic progress, two months after inking an agreement with an aim to achieve the revenue collection target of Pakistan, Arab News reported.