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Pakistan, IMF Agree To Revive Urgently Needed Bailout Package

Prime Minister Shahbaz Sharif (file photo)
Prime Minister Shahbaz Sharif (file photo)

The International Monetary Fund (IMF) has reached an agreement with Pakistan aimed at reviving a $6 billion bailout package that had been stalled since 2019.

The IMF announced on July 13 that if the organization's executive board approves the agreement, it will release a crucial $1.17 billion tranche quickly.

The agreement comes after the government of newly elected Prime Minister Shahbaz Sharif imposed additional taxes and slashed energy subsidies to comply with IMF requirements.

"The agreement with the fund has set the stage to bring the country out of economic difficulties," Sharif posted on Twitter.

Pakistani Finance Minister Miftah Ismail accused former Prime Minister Imran Khan of avoiding adopting the painful reforms in order to remain popular.

The release of the IMF funds was expected to prompt other international financial institutions to resume cooperation with Pakistan.

Based on reporting by AP, AFP, and Reuters