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10mo ago

Pakistan Secures $7 Billion IMF Loan Amid Economic Crisis

The 37-month agreement aims to stabilize Pakistan's economy through stringent reforms and increased taxation.

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Pakistanis have already held protests over tax and bill hikes introduced in last month's budget -- prepared with IMF oversight -- and more demonstrations are scheduled
A vendor arranges his wares at a market in Karachi, Pakistan, on Tuesday, Nov. 28, 2023. Pakistan is scheduled to release consumer price index (CPI) figures on Dec 1. Photographer: Asim Hafeez/Bloomberg
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Overview

  • The new loan deal is Pakistan's 25th with the IMF since independence.
  • Pakistan's government has committed to increasing its tax base and reducing its fiscal deficit.
  • The agreement includes controversial reforms, such as higher taxes and energy prices.
  • Public backlash is expected due to the austerity measures tied to the loan.
  • The IMF deal is seen as crucial for attracting additional foreign investments.