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Pakistan formally approaches IMF for bailout

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International Monetary Fund (IMF) Managing Director Christine Lagarde on Thursday confirmed that Pakistan has formally approached the IMF seeking financial assistance to address its economic challenges.

Lagarde met Pakistan’s Minister of Finance, Revenue and Economic Affairs, Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team.

“Today, I met with Pakistan’s Minister of Finance, Revenue and Economic Affairs Asad Umar, Governor of the State Bank of Pakistan Tariq Bajwa and members of their economic team. During the meeting, they requested financial assistance from the IMF to help address Pakistan’s economic challenges,” Lagarde revealed in a statement.

She further said that an IMF team will visit Islamabad in the coming week to initiate discussions for a possible economic programme. “An IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMF-supported economic programme. We look forward to our continuing partnership,” Lagarde added.

Pakistan’s economy has been in a limbo for long. It was already speculated that Pakistan would have to seek a loan package from IMF following the elections which were held on July 25.

Islamabad will be seeking a loan package from the fund for the second time since 2013.

In June, Caretaker Finance Minister Shamshad Akhtar in a press conference in Islamabad revealed that the government will be seeking financial help from the IMF in order to balance the deficit gap of USD 25 billion.

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