{"id":924969,"date":"2026-10-08T06:42:13","date_gmt":"2026-10-08T06:42:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/924969\/"},"modified":"2026-10-08T06:42:13","modified_gmt":"2026-10-08T06:42:13","slug":"imf-pakistan-reach-tentative-1-21-billion-bailout-deal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/924969\/","title":{"rendered":"IMF, Pakistan reach tentative $1.21 billion bailout deal"},"content":{"rendered":"

The International Monetary Fund (IMF)<\/a> has reached a staff-level agreement with Pakistan that could unlock about $1.21 billion (roughly \u20ac1 billion) in financing, the lender said on Wednesday<\/a>, as the South Asian country grapples with spiking food and fuel prices, and high unemployment.<\/p>\n

The bailout deal still needs to be approved by the IMF Executive Board.<\/p>\n

IMF negotiator Iva Petrova said Pakistan<\/a> had successfully navigated the impact of the Middle East conflict, with strong policies helping preserve macroeconomic stability.<\/p>\n

How does the Middle East conflict impact Pakistan?<\/p>\n

Pakistan’s economy<\/a> grew 4% in the first three quarters of fiscal 2026 with full-year growth estimated at 3.6%, the IMF said.<\/p>\n

Petrova attributed the weakened momentum to “higher energy prices and supply disruptions.”<\/p>\n

Inflation eased to about 10.3% in September after peaking in May, while core inflation remained contained, Petrova said.<\/p>\n

Pakistan remains dependent<\/a> on external financing to shore up foreign exchange reserves and meet debt repayments.<\/p>\n

A prolonged Middle East conflict makes it particularly vulnerable due to its dependence on Gulf energy imports, remittances and financing from the region, according to S&P Global Market Intelligence economist Ahmad Mobeen earlier this year.<\/p>\n

In the recent past,\u00a0Pakistan has had to turn to the IMF to tackle Islamabad’s acute balance-of-payments crisis<\/a>.<\/p>\n

Edited by: Rana Taha<\/p>\n

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