The IMF has approved the disbursement of more than $1.1bn to Pakistan, reviving a stalled $7bn assistance package expected to help stave off default despite a severe economic crunch and devastating floods.
The IMF’s board in Washington authorised the expenditure after Prime Minister Shehbaz Sharif’s government introduced austerity measures, including sharply increasing domestic fuel prices.
“The formal resumption of an IMF program is a major step forward in our efforts to put Pakistan’s economy back on track,” Sharif wrote on Twitter.
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