What is the deal with IMF?
Pakistan reached an agreement with the IMF on a bailout package under which the cash-strapped country will receive $6 billion over three years.
The staff-level agreement now awaits a formal approval by the International Monetary Fund (IMF) board of directors in Washington.
The agreement aims to support Pakistan’s “strategy for stronger and more inclusive growth by reducing domestic and external imbalances”, according to the IMF.
History of bailout packages
The latest deal would be the 22nd bailout package since Pakistan became member of the IMF in 1950.
The finance ministry approached the IMF in August 2018 for a bailout package when the Imran Khan government took over.
Possible impacts of package
The final outcome was further delayed after Prime Minister Imran Khan objected to some of the stringent conditions by the IMF. Earlier, the Pakistan government was ambivalent about the IMF package due to the expected tough conditions.
Experts have warned that the package will bring a tsunami of economic hardships for common people, including high prices of good and utilities including gas and electricity, more increase in fuel prices and further devaluation of rupee.