Pakistan’s Troubled Economy Finds Relief with $3 Billion IMF Bailout Deal
Pakistan is on the brink of its worst economic crisis since gaining independence from Britain in 1947, as it faces a combination of long-standing financial mismanagement, a global energy crisis, and the aftermath of devastating floods.
To alleviate the situation, Pakistan’s central bank raised its main interest rate to a record high of 22%. In an effort to secure financial assistance, Pakistan is awaiting approval from the International Monetary Fund (IMF) for a $3 billion deal, which will provide much-needed breathing room. The agreement, if approved, will be crucial for Pakistan to stabilize its economy and overcome challenges such as high inflation, limited foreign reserves, and macroeconomic instability.