Technical teams from the government and the International Monetary Fund (IMF) have agreed on a bailout for Pakistan, the prime minister`s adviser on finance, revenue and economy, Dr. Abdul Hafeez Shaikh, said on Sunday. In 2008, Yousaf Raza Gillani secured a $7.6 billion loan from the IMF.  “The Pakistani authorities and the IMF team have reached a staff-level agreement on economic policy that could be supported by a 39-month external funds arrangement (EFF) amounting to about $6 billion,” said Ernesto Ramirez Rigo, head of the IMF mission. In a statement late Wednesday, the IMF said the loan would help reduce public debt and increase social spending. But the IMF has imposed some harsh conditions, including the requirement to let the market decide the Pakistani rupee rate instead of letting it be backed by the Central Bank. The rupee fell by more than 40% last year. “The next step will be to send his mission to Pakistan in the coming weeks to develop technical details. But in principle, we have reached an agreement,” he said. However, Umar was removed from this position in a dramatic step and replaced by Dr. Shaikh – an internationally renowned economist. Islamabad last month approved credit terms and announced plans to cut civilian spending and freeze military spending. Islamabad and an IMF mission began discussions at the technical level on April 29 to clarify the details of the proposed bailout in the next 10 days.
The two sides were due to reach an agreement at the staff level on Friday, but talks were extended until the weekend, with the finance ministry reporting “good progress” in the talks. “After months of discussions and negotiations, an agreement has been reached at the staff level between Pakistan and the IMF,” he told PTV News. On 12th May the IMF had concluded an agreement at the level of the General Staff for the credit facility. In 1971, Pakistan lost its eastern half, East Pakistan, in a war against India. This war caused heavy losses for Pakistan. To this end, Pakistan received a loan of $84,000 in 1972, $75,000 in 1973 and another of $75,000 in 1974 to meet its growing needs.  In 1977, a new $80,000 preparedness agreement was signed as a matter of urgency.  Three years later, an expanded mechanism of $349,000 was reached in 1980.
Pakistan`s struggle continued when Pakistan withdrew an additional $730,000, with Pakistan already part of the U.S. Cold War against the Soviet Union.  ISLAMABAD (Reuters) – The Executive Board of the International Monetary Fund on Wednesday approved a three-year, $6 billion loan package to Pakistan to contain growing debt and avoid an impending balance-of-payments crisis, in exchange for harsh austerity measures. The International Monetary Fund (IMF) has granted Pakistan a $6 billion loan over three years, requested by prime minister Imran Khan`s government to revive the country`s struggling economy. In 1993, Benazir Bhutto returned to power and his government returned to the IMF and agreed on 16 September 1993 on a reserve agreement of $88,000.  The mismanagement of the economy continued by his government when they received a loan of $123,200 under the Extended Facility of Funds and were lent an additional $172,200 on February 22, 1994.  During this period, Pakistan`s economy remained in poor shape and Pakistan had to go back to the IMF to get a record third during the Bhutto government period.  Some say it is the most corrupt government in Pakistan`s history.
This time, on 13 December 1995, Pakistan received an amount of $294,690.  In 2018, Imran Khan became Prime Minister of Pakistan. . . .