Skip to content
Search

Latest Stories

IMF announces agreement on £1 bn loan deal for Pakistan

Pakistan faced a risk of default in 2023 due to an economic downturn and political instability, leading to a significant debt burden.

IMF Finalizes £1 Billion Loan Agreement for Pakistan

The IMF said in a statement on Tuesday that the 28-month agreement aims to support Pakistan’s efforts in tackling climate change. (Photo: Reuters)

REUTERS

The International Monetary Fund (IMF) has reached an agreement with Pakistan on a new £1 billion loan programme and reviewed an existing bailout, which could unlock an additional £770 million if approved.

The IMF said in a statement on Tuesday that the 28-month agreement aims to support Pakistan’s efforts in tackling climate change.


Both the new loan programme and the review of the existing bailout require approval from the IMF’s executive board, which is expected to give its final clearance.

Pakistan faced a risk of default in 2023 due to an economic downturn and political instability, leading to a significant debt burden.

A £5.4 bn bailout from the IMF helped stabilise the economy, with inflation easing and foreign exchange reserves improving.

However, the agreement—Pakistan’s 24th since 1958—came with conditions, including increasing income tax revenue and reducing power subsidies to address inefficiencies in the energy sector.

On Tuesday, the IMF stated that Pakistani authorities remained "committed to advancing a gradual fiscal consolidation to sustainably reduce public debt," alongside measures such as tight monetary policy, cost-cutting, and economic reforms.

The agreement in principle also covers the second review of the existing 37-month programme.

If approved by the IMF’s executive board, Pakistan will receive fresh funds worth approximately £770m. This would bring total disbursements under the current programme to around £1.54 bn, the Fund said.

"Over the past 18 months, Pakistan has made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment," IMF mission chief Nathan Porter said in a statement.

(With inputs from AFP)

More For You

council tax

The rise for this year accounts for 29 per cent of the total council tax increase over the last four years.

iStock

Birmingham sees highest council tax increase in England

BIRMINGHAM residents will face the highest overall increase in council tax in England for the 2025/26 financial year, according to research by Go.Compare Home Insurance.

The city’s households will pay an additional £43.1 million in council tax this year, the largest rise among all local authorities.

Keep ReadingShow less
Rain Returns to the UK: What Today’s Unsettled Weather Means

Expect intermittent rainfall and breezy conditions

iStock

Unsettled UK weather today as rain returns after dry spell

The weather today across the UK is set to be changeable, marking a shift from the warm and dry conditions experienced in recent weeks. Forecasters are predicting a mix of sunshine, showers, and cooler temperatures as low-pressure systems move in from the west.

The Met Office says much of the country can expect intermittent rainfall and breezy conditions throughout the day, particularly in the west. Temperatures are expected to hover around the seasonal norm, between 14°C and 18°C.

Keep ReadingShow less
Historic Indian restaurant Veeraswamy on Regent Street  battles eviction

A file picture from November 11, 1980, of guests at Veeraswamy

Historic Indian restaurant Veeraswamy on Regent Street  battles eviction

ONE of Britain’s oldest Indian restaurants, Veeraswamy, is fighting to keep its central London location on Regent Street as its lease nears its end.

The Crown Estate, which owns Victory House where the Michelin-star restaurant has operated for nearly 100 years since April 1926, has decided not to renew the lease. They plan to carry out a complete refurbishment of the building.

Keep ReadingShow less
Pope Francis

Pope Francis will be remembered for his commitment

Getty

BAPS' Mahant Swami Maharaj offers condolences on the passing of Pope Francis

His Holiness Mahant Swami Maharaj has offered condolences following the passing of Pope Francis, expressing solidarity with the Catholic community around the world.

In a letter addressed to members of the Roman Catholic Church, Mahant Swami Maharaj conveyed heartfelt prayers on behalf of the global BAPS Swaminarayan Hindu fellowship. The letter described the late pontiff as “a beacon of hope, compassion, and unity” and highlighted his efforts in promoting social justice, environmental stewardship, and interfaith harmony.

Keep ReadingShow less
modi vance

Modi and Vance also reviewed the progress made since Modi met president Donald Trump in Washington in February. (Photo: X/@narendramodi)

narendramodi

Modi, Vance say progress made on India-US trade talks

INDIAN prime minister Narendra Modi and US vice president JD Vance discussed the progress of trade talks between the two countries during a meeting in New Delhi on Monday, their offices said. The meeting comes as India seeks to avoid US tariffs and continue dialogue with the Trump administration.

Vance is in India on a four-day visit with his family. US officials said the visit is largely personal and includes a trip to the Taj Mahal and a speech in Jaipur.

Keep ReadingShow less