On Wednesday, the International Monetary Fund (IMF) approved a $3 billion bailout package to save Pakistan from default and put it back on the reforms path – a journey that Islamabad undertook only after friendly countries linked its support with the fund’s deal.
The IMF Executive Board approved a nine-month Stand-by Arrangement (SBA) of SDR2.25 billion or about $3 billion. The amount is equal to Pakistan’s 111% of the quota.
“The arrangement comes at a challenging economic juncture for Pakistan,” the IMF said in a statement issued after the board meeting.
The board members were critical of Pakistan’s lack of consistency in reforms and failure to honour its commitments.
The discussions on the board suggested that it was the last opportunity for the rulers to put their act together, according to sources. They added that India tried to spoil the show and eventually abstained from voting.
It is the 23rd programme that Pakistan signed with the IMF. So far, only one programme (2013-16) could be fully implemented on the back of a host of waivers against key conditions.
