IMF Approves $7 Billion Loan to Stabilize Pakistan's Economy

The relief package comes with stringent reforms aimed at long-term economic stability amid Pakistan’s ongoing debt crisis.

Pakistan has secured a $7 billion loan from the IMF, its 25th since 1958, to support its struggling economy.
The loan agreement includes conditions such as cutting power subsidies and broadening the tax base to ensure economic reforms.
Pakistan's debt totals over $250 billion, with significant amounts owed to China and the World Bank, posing a major challenge to long-term stability.
Prime Minister Shehbaz Sharif highlighted the crucial support from Saudi Arabia, China, and the UAE in securing the deal.
Economists warn that while the loan provides short-term relief, sustainable economic recovery depends on implementing structural reforms and achieving political stability.