Pakistan inks $7bn IMF bailout with big concessions; challenges lie ahead

Islamabad forced to abandon China-based special economic zones to seal loan deal

2024-09-27.Economy

A market in Karachi. Pakistan's economy grew just 2.38% in the fiscal year that ended in June. © Reuters

ADNAN AAMIR, Contributing writer

ISLAMABAD -- Pakistan's leader is hailing a new $7 billion IMF loan as his country's last bailout, but Islamabad was forced to make major concessions to get the deal done, including scrapping China-backed special economic zones.

The Washington-based fund's board approved the 37-month loan on Wednesday, after an unusually long delay that had raised fears over the deal's future, following an initial agreement in July.

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