Pakistan and IMF Reach Preliminary Deal for $700m Tranche of $3bn Bailout

The IMF acknowledges a nascent recovery in Pakistan's economy, but warns of significant external risks and the need for continued resilience-building efforts.

Pakistan and the International Monetary Fund (IMF) have reached a preliminary deal for the release of $700m from a $3bn bailout package after two weeks of talks.
The $700m fund is the second tranche of the bailout the IMF signed with Pakistan in June this year.
The IMF in its statement said, 'A nascent recovery is underway, buoyed by international partners’ support and signs of improved confidence.'
The statement added that inflation – which in May hit 38 percent, the highest in four decades, and is currently hovering at about 30 percent – is 'expected to decline over the coming months amid receding supply constraints and modest demand'.
Pakistan, home to 241 million people, has been facing financial and political instability for nearly two years. Its central bank’s foreign reserves depleted to less than $4bn, leaving just enough money for less than a month of import. It owes more than $20bn in external debt in the current fiscal year.