The IMF has approved a new loan of approximately $1.2 billion to Pakistan under a bilateral arrangement. This loan assistance reflects the country's stability despite the devastating floods.

Pakistan receives major support from the IMF, approves new loan assistance of $1.2 billion.

IMF Loan to Pakistan: The International Monetary Fund (IMF) has approved a new loan of approximately $1.2 billion to Pakistan under a bilateral arrangement. This loan assistance reflects the country's stability despite devastating floods.

The IMF Executive Board approved the dual-track bailout, a 37-month Extended Fund Facility (EFF) and a climate-focused Sustainable Stabilisation Facility (RSF), at a meeting held in Washington on Monday, the newspaper Dawn reported on Tuesday.

Cash-strapped Pakistan is currently under the IMF's 24th Program, which last year agreed to provide $7 billion in assistance over a period of 39 months. The report said the latest approval allows Pakistan to withdraw $1 billion under the EMF and $200 million under the RSF.

IMF statement

"Given the uncertain global environment, Pakistan needs to maintain prudent policies to further strengthen macroeconomic stability and accelerate reforms needed to achieve strong, private-sector-led, and sustainable medium-term growth," IMF Deputy Managing Director and Acting Chief Nigel Clarke said in a statement.

Islamabad officials described the approval as a sign of confidence in Pakistan's reform efforts and macroeconomic management, the newspaper reported. They also stressed that the real test would be translating these commitments into concrete economic reforms.

IMF expressed dissatisfaction

The IMF last month expressed dissatisfaction over Pakistan's weak fiscal management, cash monitoring, and accountability for public resource allocation and advised it to reduce personal and political misuse of taxpayers' money.