WASHINGTON: The International Monetary Fund (IMF) released a $6 billion bailout package to support Pakistan's sinking economy, but it also led to huge dissatisfaction within the country. During the 39-month period contract, the IMF will monitor the progress of Pakistan's economy each quarter. An amount of $1 billion has also been released to Pakistan under the contract.
It is worth mentioning here that this is Pakistan's 13th IMF bailout package that will try to bridge the country's structural imbalances. For this, the IMF has put a condition for Pakistan to increase tax collection so that it can repay its foreign debt and increase foreign exchange reserves. Under the contract with the IMF, Pakistan is set to raise its foreign exchange reserves from $6.824 billion to 11.87 billion dollars by next year.
As a result, Pakistan's total foreign exchange reserves will rise from -17.7 billion dollars to 10.8 billion dollars in the same period. The IMF has asked Pakistan to pay $37.35 billion of foreign debt within the bailout agreement period. The figure is 14.68 billion dollars in debt from Beijing alone, most of which are due to the China-Pakistan Economic Corridor (CPEC).