Pakistan, IMF reach $3bn bailout deal after months of delays

Crucial last-minute agreement offers respite for nation on brink of default

A currency exchange in Karachi: Islamabad agreed to raise taxes, cut government spending and hike interest rates to meet the IMF's terms for releasing more funds.

ZIA UR REHMAN, Contributing Writer

June 30, 2023 12:24 JST

Updated on June 30, 2023 17:21 JST

KARACHI -- Pakistan and the International Monetary Fund have reached a $3 billion bailout deal after months of delays, offering a badly needed respite for the South Asian nation perilously close to economic collapse.

The interim loan deal announced Friday, which is subject to approval by the IMF's executive board in mid-July, comes after Islamabad's recent efforts to meet the Washington-based lender's demands, including raising taxes, cutting government spending and hiking interest rates to a record 22%.