ISLAMABAD, May 13 -- The Pakistani government and the International Monetary Fund (IMF) have reached an agreement on a bailout package for Pakistan, Adviser to the Pakistani prime minister on Finance, Revenue and Economic Affairs Abdul Hafeez Shaikh announced on Sunday.
Talking to the Pakistan Television Network (PTV), Shaikh said that the technical teams of Pakistan and the IMF have agreed on a bailout package for a period of three years under which Pakistan would receive 6 billion U.S. dollar assistance.
The advisor said "after months of discussions and negotiations, a staff-level agreement has been reached between Pakistan and the IMF," which still needs approval from the IMF board of directors in Washington, but it shows that effective reforms are underway in Pakistan.
A press release from IMF Mission Chief for Pakistan Ernesto Ramirez Rigo also confirmed the announcement by the Pakistani side as saying that Pakistan's economic policies could be supported by a 39-month Extended Fund Arrangement (EFF) for about 6 billion U.S. dollars.
The IMF official added that the facility aims to support Pakistan's "strategy for stronger and more inclusive growth by reducing domestic and external imbalances, removing impediments to growth, increasing transparency, and strengthening social spending."
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