Pakistan to receive $3 billion in new IMF bailout package

Pakistan is to receive some $3 billion from the International Monetary Fund (IMF) following months of talks with the south Asian country, which has been roiled by a severe economic crisis for years.
The new deal is expected to be approved by the IMF's Executive Board in mid-July, the IMF said announcing the new deal late on Thursday.
Last year, the IMF had put disbursements of around $1 billion under another aid package on hold and they have now lapsed.
Among other things, the IMF aid is to support the South Asian country in reforms in the highly indebted energy sector and help it adapt to climate change. Pakistan, though one of the countries with the lowest level of carbon emissions worldwide, is particularly hard hit by the consequences of the climate crisis.
The nuclear power sector has been struggling with a severe economic crisis for years, also reflected by rising inflation. Within a year, prices for electricity, gas and petrol have more than doubled.
Political instability and last year's flood disaster, which temporarily submerged a third of the country, have caused further setbacks for the economy.
However, South Asia expert Michael Kugelman stressed in Foreign Policy magazine that the bailout package mainly supports Pakistan's economy in the short term. In the long run, far-reaching political reforms are necessary, the expert said.