The International Monetary Fund (IMF) and Pakistan agreed on a USD 5.3 billion bailout package to revive the latter's economic growth.
The bailout package is a three-year programme under the Extended Fund Facility (EFF). It will be further discussed in September 2013, Pakistani Minister for Finance, Revenues and Economic Affairs Senator Muhammad Ishaq Dar said in an official press release Friday.
He further said, "Pakistan has also requested to increase the present level of access of 348 percent of Quota to 500 percent of Quota, together with appropriate front loading to match Pakistan's obligations toward the Fund under the previous programme." The programme aims at stabilizing Pakistan's economy and creating an enabling environment for revival of economic growth, Fiscal consolidation, resolution of energy crisis and promotion of social safety nets, he added.
According to an official press release, Dar said "Much of this description also applies to the fact that Pakistan has been saddled with huge payment liabilities of the previous government to retire previous loans from the IMF without having adequate foreign exchange reserves".
IMF Mission was headed by Jeffery Franks who said that IMF expects Pakistan to reach a budget deficit target of six percent of gross domestic product as part of its bailout loan programme, said Franks. The floating interest rate would be set at three percent and that the loan would be payable over a longer period than conventional stand-by arrangements, he added.