IMF approves $6.7 billion loan for Pakistan
WASHINGTON (AP) — The International Monetary Fund has approved a $6.7 billion loan for Pakistan to help the country avert a financial crisis and to support structural changes in the economy aimed at boosting investment and growth.
The IMF said the Executive Board approved the loan on Wednesday. It will allow the release of a first installment of $540 million with the remainder paid out over three years.
Pakistan's foreign currency reserves have been severely depleted over the past two year. To secure the loan, it had to commit to changes in the economy designed to increase growth and improve financial stability. The measures aim to bring down the deficit, reduce pervasive electricity shortages and increase the country's poor rate of tax collection.