“Following discussions between International Monetary Fund (IMF) staff and the Pakistani authorities in Islamabad from February 3 to 13 (see Press Release No. 20/51), which have continued in recent days from IMF headquarters, IMF staff and the Pakistani authorities have reached agreement at the staff level on the policies and reforms needed to carry out the second review of the IMF`s reform of the authorities, supported by the Arroser EFF. The agreement is subject to IMF management approval and review by the Executive Board, expected in early April. The final review will allow for the disbursement of SDRs 328 million (about $450 million). In May, Pakistan agreed with the International Monetary Fund on the $6 billion bailout. The agreement is subject to IMF management approval and audit by its Executive Board, expected in early April. 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.  The International Monetary Fund said on Thursday it had reached an agreement with Pakistan on “guidelines and reforms” at the personnel level to finalize the second revision of the $6 billion (about Rs 41,314 billion) bailout, Dawn reported.
The financial aid is an attempt to help the country save its slowing economy, improve public finances and reduce debt. Where the military supports certain parties to preserve their economic interests, the IMF wants Pakistan to pursue certain geopolitical interests. For many, the bailout agreement shows that instead of economic reforms, geostrategic interests are at the heart of the agreement. “IMF staff and the Pakistani authorities have reached an agreement at the staff level on the policies and reforms needed to complete the second revision of the authorities` reform program, supported by the EFF,” said Ernesto Ramirez Rigo, head of the IMF mission for Pakistan. The agreement now awaits the agreement of the Executive Board of the International Monetary Fund, expected in April. Once the review of the transaction is completed, the agency will depreciate approximately $US 450 million. “The Pakistani authorities and the IMF General Staff have reached an agreement at staff level on the policies and reforms needed to complete the first review under the EFF. The agreement is subject to approval by IMF management and the Executive Board.
The completion of the review will be the payment of SDRs 328 million (about €450 million). The United States(S.)) and is helping to free up considerable financial resources from bilateral and multilateral partners. Pakistani authorities have not disclosed the exact details of the policy and reforms needed to finalize the second revision of the deal, Dawn reported. However, both sides agreed to create “some air to breathe” before a further adjustment taking into account rising inflation in Pakistan. The International Monetary Fund (IMF) said it had reached a staff-level agreement with Pakistani authorities “on the policies and reforms” needed to finalize the second revision of the $6 billion loan approved for the financially troubled country to help its fragile economy, a media report said Friday.