IMF approves USD 6 billion loan for cash-strapped Pakistan

The IMF on Wednesday approved a USD 6 billion loan over a period of three years for cash-strapped Pakistan, aimed at returning sustainable growth to the country's fragile economy and improve the standards of living.

Pakistan's finance ministry approached the International Monetary Fund (IMF) in August 2018 for a bailout package when the Imran Khan government took over.

"IMF Executive Board approved today a three-year USD 6 billion loan to support #Pakistan's economic plan, which aims to return sustainable growth to the country's economy and improve the standards of living," IMF spokesperson Gerry Rice tweeted on Wednesday.

Pakistan last month reached an agreement with the IMF on the bailout package after marathon talks.

Khan changed the entire economic team including the finance minister, chief of State Bank of Pakistan (SBP) and head of Federal Bureau of Revenue (FBR) under criticism for failure to improve the economy.

The latest deal is the 22nd bailout package since Pakistan became member of the IMF in 1950.

Pakistan has so far received billions in financial aid packages from friendly countries like China, Saudi Arabia and the UAE during the current fiscal year.

Last month, Pakistan secured a bailout package of USD 3 billion from oil-rich Qatar.

Earlier, China gave USD 4.6 billion in shape of deposits and commercial loans and Saudi Arabia provided USD 3 billion cash deposit and USD 3.2 billion oil facility on deferred payments. The United Arab Emirates also provided USD 2 billion cash deposit.