The International Monetary Fund (IMF) has agreed to revive a $6 billion bailout package for Pakistan, a move that will help stabilise the country’s crumbling economy.

Pakistan secured the bailout package in 2019 to rescue its economy from balance of payment and fiscal deficit crises but the loan was suspended twice after the payment of only three tranches.

A sum of $500 million was paid earlier this year before the latest suspension due to Pakistan’s failure to implement an economic reform agenda.

The IMF said in a statement on Monday, that it had reached a staff level accord with Pakistan to revive the package.

The statement said payment of another tranche would, however, be subject to approval by the fund’s executive board and Islamabad’s actions to implement more reforms.

The development is seen as a vital boost for Pakistan to revive it’s crumbling economy in the face of a spike in global energy and commodities’ prices.

The IMF had asked Pakistan to adopt a market-based exchange rate instead of the central bank’s control on the forex market.

Some of the reforms were implemented since the deal was signed but privatisation and ending subsidies remained elusive due to political pressures.

The IMF agreement comes weeks after longterm ally Saudi Arabia announced to place $3 billion in Pakistan’s central bank to help it maintain depleting reserves at a safe level.

(dpa/NAN)