Pakistan, which has been experiencing an economic crisis has partnered with the International Monetary Fund for over $3 billion (£2.4 billion).
According to BBC, the agreement was finally reached after an eight-month wait though the board of the global lender is yet to accept it.
Since gaining independence from Britain in 1947, Pakistan, a South Asian country has been experiencing its worst economic crisis.
The Pakistani economy which had been in trouble due to years of financial mismanagement has been brought to a verge of collapse as a result of the international energy crisis and the devastation caused by last year’s floods.
According to the IMF’s mission leader for Pakistan, Nathan Porter, “the economy has experienced a number of external shocks, such as the devastating floods in 2022 that affected the lives of millions of Pakistanis and a spike in global commodity prices following Russia’s war in Ukraine.”
“As a result of these shocks as well as some policy missteps, the economic growth has stalled,” he continued.
Higher than anticipated, the $3 billion in financing will be dispersed over nine months.
The final $2.5 billion of a $6.5 billion rescue package agreed upon in 2019 was still owed to Pakistan as of Friday.
