ISAS Insights

The International Monetary Fund (IMF) has approved a US$7.6 billion bailout package to prevent Pakistan from defaulting on its external debt. The 23-month Stand-By Arrangement under the Fund's fast-track Emergency Financing Mechanism has provided an immediate US$3.1 billion funding to strengthen the country's fast deteriorating foreign exchange reserves. The programme seeks to preserve social stability and restore investor confidence in Pakistan by addressing its current macro-economic imbalances. At the same time, it sends a strong signal to the international donor community about the country's improved macroeconomic prospects.