Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen correspondent: An Israeli drone strike targeted the town of Al-Qlailah, Southern Lebanon.
Al Mayadeen's correspondent in South Lebanon: Israeli drone strikes town of Harouf, Nabatieh district.
Factions' statement: The attendees agreed to support and continue implementing the ceasefire agreement measures, including the withdrawal of the occupation and lifting the siege.
Factions' statement: Calling for an end to all forms of torture and violations against prisoners in occupation prisons and the necessity of obligating the occupation to do so.
Statement: The current moment is crucial, making the meeting a true turning point toward national unity in defense of our people and their right to life, dignity, and freedom.
Factions' statement: Call for an urgent meeting of all Palestinian forces and factions to agree on a national strategy.
Factions' statement: Continuing joint work to unify visions and positions to confront the challenges facing the Palestinian cause.
Statement of the factions: Emphasis on the unity of the Palestinian political system and the independent national decision.
Statement: Approval to establish an international committee to oversee the financing and implementation of the reconstruction of the Gaza Strip.
Statement: The committee is responsible for managing life and services in cooperation with Arab brothers and international institutions, based on transparency and accountability.

Pakistan reaches $7 bn aid deal with IMF

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Jul 2024 08:51
3 Min Read

The latest bailout, in the form of loans, follows the government's commitment to implement reforms, including major efforts to broaden the tax base.

Listen
  • x
  • Pakistan's Finance Minister Muhammad Aurangzeb speaks and parented, the Federal Budget before the National Assembly of Pakistan, in Islamabad, Pakistan on June 12, 2024. (AP)
    Pakistan's Finance Minister Muhammad Aurangzeb speaks and presents the Federal Budget before the National Assembly of Pakistan, in Islamabad, Pakistan on June 12, 2024. (AP)

Pakistan and the International Monetary Fund reached a three-year $7 billion aid package deal, the Washington-based institution revealed on Friday. The new program aims to "cement macroeconomic stability and create conditions for stronger, more inclusive, and resilient growth," according to the statement. However, it still needs to be validated by the Fund's Executive Board.

Faced with chronic mismanagement, Pakistan's economy was on the brink, challenged by the COVID-19 pandemic, the effects of the war in Ukraine, and supply difficulties that fueled inflation. Additionally, record flooding in 2022 affected a third of the country.

With its foreign currency reserves dwindling, Pakistan faced a debt crisis and was compelled to seek assistance from the IMF, securing its first emergency loan in the summer of 2023.

Tax reforms in Pakistan 

Related News

Algeria set to become one of largest Arab economies by 2026: IMF

Syria not seeking IMF, World Bank loans: Interim finance minister

Coming to Pakistan in the form of loans, the latest bailout follows a commitment by the government to implement reforms, including major efforts to broaden the country's tax base. However, in a nation of over 240 million people, only 5.2 million filed income tax returns in 2022. 

During the 2024-25 fiscal year, which begins on July 1, the Pakistan government aims to raise nearly $46 billion in taxes, a 40% increase from the previous year. As part of this effort, Pakistan's tax authority blocked 210,000 SIM cards of users who had not filed tax returns earlier this month in a bid to widen the revenue bracket.

Fiscal strategy 

The South Asian nation initiated discussions with the IMF for a new multi-billion dollar loan agreement, marking its 24th bailout in over six decades, to support its economic reform program. With around 40% of the population already living below the poverty line, the World Bank warned in April that 10 million more Pakistanis could fall below this threshold.

To address IMF demands, Islamabad aims to reduce its fiscal deficit by 1.5% to 5.9% in the coming year. The previous nine-month $3 billion IMF deal provided a lifeline but required unpopular austerity measures, including the removal of consumer cost subsidies.

In recent months, Pakistan's current account balance has slightly recovered, and high inflation is just beginning to decrease. However, foreign debt remains very high at $242 billion, with debt servicing expected to consume half of the government's income in 2024, according to the IMF.

The Fund also anticipates 2% growth this year, with inflation projected to reach nearly 25% year-on-year before gradually decreasing in 2025 and 2026.

  • Pakistan
  • IMF
  • International Monetary Fund

Most Read

From previous scenes of the Qassam Brigades targeting an Israeli D9 bulldozer with a Yassin 105 shell, east of Deir al-Balah. (Military Media of the Qassam Brigades)

US knew fatal Rafah blast cause was not Hamas op., says journalist

  • Politics
  • 20 Oct 2025
'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Abu Hamza, the spokesperson for the Al-Quds Brigades, during a speech televised on October 22, 2025 (Al-Quds Brigades Military Media)

Al-Quds Brigades' Abu Hamza mourns leaders, vows continued resistance

  • Politics
  • 22 Oct 2025
US missionary kidnapped in Niger capital, suspected taken toward Mali

US missionary kidnapped in Niger capital, suspected taken toward Mali

  • Africa
  • 23 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Undated photo of Hanwha Ocean’s Goeje Shipyard in South Korea (Hanwha Ocean)
Politics

China counters US maritime bloc with sanctions on Hanwha Ocean

Catherine Connolly speaks after being after being elected as the new President of Ireland at Dublin Castle, Ireland, Saturday, Oct. 25, 2025. (AP)
Politics

Connolly wins Irish presidency in blow to political establishment

Buildings destroyed during the Israeli air and ground offensive are seen in the Al-Shati camp, in Gaza City, Friday, Oct. 24, 2025. (AP)
Politics

'Israel's' post-ceasefire demolitions in Gaza violate agreement: Hamas

Iran's Foreign Minister Abbas Araghchi attends the 17th annual BRICS summit in Rio de Janeiro, Brazil, July 7, 2025 (AP)
Politics

Iran’s Araghchi: Our nuclear bomb is resilience, not weapons

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS