IMF approves $6.7 bn loan to Pakistan

The International Monetary Fund approved Wednesday a $6.7 billion loan to Pakistan to support the country’s economic reform program.

The IMF executive board authorized a three-year arrangement, making an initial disbursement of $540 million available to the Pakistani authorities, the IMF said in a statement.

The remaining amount will be evenly paid out over the duration of the program, subject to the completion of quarterly reviews, the Washington-based global lender said, adding that adherence to the program would likely encourage financial resources from other donors.

“Despite the challenges it faces, Pakistan is a country with abundant potential, given its geographical location and its rich human and natural resources,” the IMF said.

“The authorities’ program is expected to help the economy rebound, forestall a balance of payments crisis and rebuild reserves, reduce the fiscal deficit, and undertake comprehensive structural reforms to boost investment and growth.”