Pakistan has secured a $6bn (£4.6bn) bailout from the
International Monetary Fund (IMF) as the country battles to stave off an
economic crisis.
The funding, which still needs approval from the IMF's
management, would be provided over three years.
The agreement comes after months of negotiations and marks
the latest in a string of bailouts from the fund.
Pakistan has faced an economic crisis with short supplies of
foreign currency reserves and stagnating growth.
In a statement, the IMF said Pakistan faces a
"challenging economic environment, with lacklustre growth, elevated
inflation, high indebtedness, and a weak external position".
It said the funding programme would support the authorities'
strategy for stronger growth by "improving the business environment,
strengthening institutions, increasing transparency, and protecting social
spending".
IMF bailout funding is typically provided under strict
conditions, and some analysts have warned that any fresh IMF injection could
harm Prime Minister Imran Khan's pledges to build a welfare state.
Since he was sworn in last August, Mr Khan has been
aggressively pursuing help from friendly countries in order to reduce the size
of the bailout package that Pakistan may need from the IMF.
The country has faced a potential balance of payments crisis
- where a nation struggles to meet external debts or pay for critical imports -
due to a stagnating economy.
The IMF forecasts Pakistan's economic growth will slow to
2.9% this fiscal year from 5.2% in 2018.
In February, the central bank had only $8bn left in foreign
reserves.
Abdul Hafeez Shaikh, an economic advisor to the prime
minister, said that foreign loans have now exceeded $90bn, and exports have
registered a negative growth over the past five years.
"So Pakistan will get $6 billion from the IMF, and in
addition we will get $2 to $3 billion from the World Bank and Asian Development
Bank in the next three years," said Mr Shaikh, according to the AFP news
agency.
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