Pakistan secures further $1.2 billion loan from IMF

Islamabad, Pakistan: Pakistan on Tuesday welcomed the release of a further $1.2 billion in loans from the International Monetary Fund to help its econ...

Islamabad, Pakistan: Pakistan on Tuesday welcomed the release of a further $1.2 billion in loans from the International Monetary Fund to help its economic recovery and reforms programme, calling it evidence of "hard work" undertaken after two years of financial crisis.

The IMF approved the funds at a Washington meeting Monday, bringing the total amount provided under two loan facilities -- a bailout fund and a climate sustainability fund -- to $3.3 billion.

"Pakistan's reform implementation... has helped preserve macroeconomic stability in the face of several recent shocks" such as devastating flooding last summer, the fund's deputy managing director Nigel Clarke said in a statement.

Economic growth is projected to rise to 3.2 percent in the fiscal year to June 2026, after an estimated 3.0 percent last year.

Inflation meanwhile is set to average 6.3 percent this fiscal year, a huge drop from the 23.4 percent average in the year to June 2024.