Pakistan receives final IMF permission for a $3 billion loan.

The crisis-hit country will receive approximately $1.2 billion upfront, with the remainder to be distributed over the next nine months.

The South Asian country was on the verge of defaulting on its debts and had hardly enough foreign currency to cover a month’s worth of imports.

The government also got funding from allies Saudi Arabia and the United Arab Emirates (UAE) this week.

Shehbaz Sharif, Pakistan’s Prime Minister, said the bailout was a significant step forward in attempts to stabilize the economy.

“It strengthens Pakistan’s economic position to overcome immediate to medium-term economic challenges, providing fiscal space for the next government to chart the way forward,” he said.

The IMF agreement came after eight months of difficult talks about how to address major long-term challenges with Pakistan’s struggling economy.

The country was on the verge of failing to satisfy debt repayments to creditors.

Last year, terrible floods devastated most of the country, compounding other serious issues such as excessive inflation and economic mismanagement by previous governments.

Saudi Arabia deposited $2 billion with Pakistan’s central bank on Tuesday, according to Pakistan Finance Minister Ishaq Dar.

Mr Dar announced on Wednesday that the central bank had also received $1 billion from the UAE.

The energy-rich Middle Eastern countries pledged the funds in April, but did not hand them over until the IMF rescue was confirmed.

The IMF agreement, together with cash from Saudi Arabia and the United Arab Emirates, will boost Pakistan’s weak economy.

According to Mr Dar, Pakistan’s foreign exchange reserves are likely to increase to roughly $15 billion by the end of this month.

Fitch Ratings improved Pakistan’s sovereign rating on Monday, providing some respite to investors in the country’s stocks and bonds.

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