IMF reaches $3 billion preliminary agreement with Pakistan | CNN Business

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Pakistan has reached a preliminary deal with the IMF worth about $3 billion that could help stabilize its flailing economy and lift the South Asian nation out of a crisis that has pushed millions to the brink

The staff-level agreement is subject to approval by the IMF’s executive board, which is expected to consider the request by mid-July, it said in a Thursday statement. The deal, which had been stalled for months, gives the country of 220 million much needed access to US dollar funding, enables additional financing from creditors and reduces the risk of default, after growth stalled and inflation soared over the past year.

Efforts to secure the loan were further complicated by political turmoil that engulfed much of the nation earlier this year, after former Prime Minister Imran Khan was arrested on corruption charges, sparking deadly protests. Khan was dramatically ousted from power in a no-confidence vote last year, after numerous accusations of bad governance, including economic mismanagement. The crushing poverty has driven many to flee the nation.

 

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