Pakistan is hopeful that the IMF would approve a $3 billion bailout.

Shehbaz Sharif, the prime minister of Pakistan, expressed optimism that the International Monetary Fund’s board will vote to accept a $3 billion bailout on Wednesday.

Advertisements

Last month, a staff level agreement was achieved between Pakistan and the Fund, providing crucial funding for the nation’s dire financial situation.

Before disbursing the $1.1 billion upfront and the remaining money in installments, the arrangement must be approved by the board.

At a gathering in Islamabad, Sharif declared, “The meeting is taking place today.” “I hope the program will be approved by the board. The economy of Pakistan will be helped to stabilize through this scheme.

After eight months of difficult negotiations about budgetary restraint, Pakistan’s struggling economy, which had been on the verge of default, was finally given a nine-month temporary lifeline.

With its central bank’s reserves barely covering a month’s worth of restricted imports, the $350 billion South Asian economy was in the midst of a debilitating balance of payments crisis.

The IMF board’s approval will also enable Pakistan to access more bilateral and multilateral external financing.

Beijing extended Pakistan’s loan by $5 billion over the past three months, which Sharif said he thought was a significant factor in preventing the debt default.

On Tuesday, Saudi Arabia made a $2 billion support deposit with the national bank. Investors in Pakistan’s stocks and bonds are now relieved after Fitch Credit Rating Agency improved Pakistan’s sovereign rating from CCC- to CCC on Monday.