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The International Monetary Fund (IMF) announced on Monday that it has reached an agreement with Pakistan to restart a stalled $6 billion funding program for the South Asian country, which is facing growing economic challenges.
“The Pakistani authorities and IMF staff have reached a staff level agreement on policies and reforms needed to complete the sixth review,” the IMF said in a statement.
“The agreement is subject to approval by the Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms,” it said.
The sixth review has been pending since earlier this year, and its completion would release 750 million in IMF special drawing rights, or approximately $1 billion, bringing total disbursements to around $3 billion, according to the statement.
Pakistan entered the IMF’s $6 billion, 39-month funding program in July 2019, but funding was halted earlier this year due to disagreements over required reforms.
Pakistan has been in talks with the IMF for several months to seek a relaxation of the package’s terms and conditions.
Story by : Norvisi Mawunyegah