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
Iran: Iranian TV: Israeli Hermes drone shot down over Tehran
Iran Al Mayadeen's correspondent: New Israeli evacuation warnings issued in the Mehran neighborhood, a residential area in the capital, Tehran
Iran: Al Mayadeen correspondent: No confirmation from official Iranian sources regarding Trump's talk of a ceasefire
Trump: This is a War that could have gone on for years, and destroyed the entire Middle East, but it didn’t, and never will! God bless Israel, God bless Iran, God bless the Middle East, God bless the United States of America, and God bless the world
Trump: During each ceasefire, the other side will remain peaceful and respectful
Trump: On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran on having the stamina, courage, and intelligence to end, what should be called, THE 12 DAY WAR
Trump: Officially, Iran will start the ceasefire and, upon the 12th Hour, Israel will start the ceasefire and, upon the 24th Hour, an official end to the 12 day war will be saluted by the world.
Trump: [The ceasefire will last] for 12 hours, at which point the war will be considered ended!
US President Donald Trump: Congratulations to everyone! It has been fully agreed by and between Israel and Iran that there will be a complete and total ceasefire in approximately 6 hours from now
Iran: Explosions were heard in Tehran

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

World Bank: Global growth to slow sharply, worst since 2008

No security possible amid continued Israeli aggression: Lebanese PM

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

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

  • MENA
  • 17 Jun 2025
Israeli workers survey the site where a missile launched from Iran struck in Haifa on Sunday, June 22, 2025. (AP)

True Promise 3, wave 20: 40 missiles launched, Kheibar-Shekan in first

  • Politics
  • 22 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
President Donald Trump speaks with reporters upon arriving at Morristown Municipal Airport in Morristown, N.J., Friday, June 20, 2025. (AP Photo/Manuel Balce Ceneta)
Politics

Trump lashes out at media outlets for downplaying Iran strike impact

ap
Politics

Turkey denies role in US-Israeli strikes on Iran nuclear sites

Iran targets US air base in Qatar with 'destructive' missile strike
MENA

Iran retaliates, targets US air base in Qatar with missiles

Demonstrators hold up a banner during a protest by Palestine Action group in London, Monday, June 23, 2025. (AP Photo/Frank Augstein)
Politics

UK signals 'terror' ban on 'Palestine Action', sparking protests

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