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
The Israeli Walla! website: We are running out of stockpiles, our forces are exhausted, and the lives of the captives are in danger. It is time for a ceasefire deal in Gaza.
Several wounded in an Israeli bombardment of a tent in al-Mawasi, south of Khan Younis in the Gaza Strip.
Israeli media: Three wounded, three killed in an ongoing operation in the Gaza Strip.
Al Mayadeen's correspondent in southern Lebanon: Israeli artillery shelling targets the outskirts of the town of Shebaa
Al-Qassam Brigades: The targeting took place at the intersection of 'Street 5' with the western line north of Khan Younis
Al-Qassam Brigades: A NIMR armored personnel carrier carrying an Israeli soldier was targeted with an Al-Yassin missile north of Khan Younis
Israeli media: At least two soldiers killed by anti-tank missile fired at Israeli army forces in the Gaza Strip
Local Syrian sources: Mortar shells fell on more than nine villages in the Sweida countryside
Local Syrian sources: Dozens of dead and wounded have arrived at Sweida hospitals as a result of ongoing clashes at several locations in the western Sweida countryside
Local sources: Civilians, including children and women, were injured in the al-Maqous neighborhood of Sweida, in Syria, as a result of ongoing clashes

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

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

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