The International Monetary Fund Executive Board on Wednesday approved a $6 billion, three year loan for Pakistan to try to right the nation’s economy. 

The fund released $1 billion to Pakistan immediately and said in a statement the programme aims to “support the authoritieseconomic reform programmeand to help “generate sustainable and balanced growth.” The IMF will review Pakistan’s performance quarterly over 39 months, phasing release of the additional aid over time. 

The Imran Khan government agreed on the loan programme last month and announced plans to slash civil expenditures and freeze military spending while promising to substantially raise revenues to stem a yawning fiscal deficit, and pledging to collect 5.5 trillion rupees ($36 billion) in taxes. “Pakistan is facing a challenging economic environment, with lackluster growth, elevated inflation, high indebtedness and a weak external position,“ the result of a “legacy” of uneven policies, IMF mission chief Ernesto Ramirez Rigo said in a statement in june. 

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