IMF approves emergency loan for Pakistan to fight Covid-19
Islamabad
The International Monetary Fund (IMF) has approved a nearly 1.4-billion-dollar emergency loan to help Pakistan fight the new coronavirus amid fears the country’s economy might face contraction due to the pandemic.
The money would help Pakistan deal with the urgent balance of payment needs stemming from the outbreak, a statement by the IMF said early Friday, said a dpa report.
Pakistan’s foreign exchange reserves would receive a significant boost from the loan under the Rapid Finance Instrument, said Reza Baqir, the country’s central bank chief.
The loan comes days after both the IMF and the World Bank predicted Pakistan’s economy might shrink by up to 1.5 per cent during the financial year ending on June 30.
A prolonged economic halt might cut more than 18 million jobs and push half of the population into poverty, said a report by researchers associated with the country’s planning ministry.
Pakistan has more than 7, 000 confirmed cases of Covid-19 as of Friday with 134 deaths, according to Health Ministry statistics.
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