ISLAMABAD (Reuters) – The International Monetary Fund (IMF) board approved the seventh and eighth bailouts for Pakistan on Monday, Finance Minister Miftah Ismail said. Review, the program will release $1. 17 $1 billion in funding to cash-strapped countries.
He also said that the International Monetary Fund had agreed to extend the program for a year and increase funding by $1 billion.
These funds will be the lifeblood of the South Asian country, which is currently suffering from devastating floods, its foreign exchange reserves have dropped to levels that can cover only one month of exports, and its economy has Huge current account deficit and high inflation to fight.
“The IMF Board has approved the reinstatement of our EFF program. We should now get 7th and 8th tranches 1.17 billion dollars,” Ismail tweeted (NYSE: TWTR).
The IMF’s permanent representative in Islamabad did not immediately respond to a request for comment.
Pakistan’s 36 $6 billion Expansion Fund loan scheme has stalled since entered earlier this year At times, it struggled to meet targets set by lenders.
The board plans to discuss the Pakistan review at its meeting on Monday.
Ismail said the government has put the plan back on track with painful economic corrective measures to save Pakistan from default.
Ismail told Reuters that the IMF board also agreed to increase the size of the program by $1 billion and extend it for a year.
IMF Board approval will open up other multilateral and bilateral financing channels for Pakistan, pending clean health certificates from lenders.