Islamabad: The International Monetary Fund (IMF) has sanctioned a $7 billion loan to aid Pakistan’s economy, focusing on crucial reforms aimed at enhancing economic stability and growth. This funding, approved on Tuesday, is intended for a three-year economic program that will target expanding the tax base, increasing utility rates, and implementing structural reforms.

According to Zameen.Com, this financial assistance marks the 24th time Pakistan has entered into an IMF program since 1958. The country has been grappling with a severe economic downturn, further stressed by political unrest, catastrophic floods, and escalating inflation rates.

During discussions on the loan, Prime Minister Shahbaz Sharif expressed his determination for this to be Pakistan’s last engagement with the IMF, pointing towards efforts to boost investments and garner additional support from international partners like Saudi Arabia, China, and the UAE. IMF Managing Director Kristalina Georgieva commended Pakistan’s recent economic reforms, highlighting notable progress in growth and inflation metrics, while also emphasizing the importance of sustaining focus on long-term economic stability.

Finance Minister Muhammad Aurangzeb acknowledged the challenges associated with the reform measures but affirmed their critical role in Pakistan’s financial rehabilitation efforts.