Pakistan is reportedly waiting for approval from the Gulf Cooperation Council (GCC) countries to unlock a loan from the International Monetary Fund (IMF) to help it tackle the economic crisis caused by the coronavirus pandemic.
The IMF has approved a $6 billion loan package for Pakistan but is awaiting confirmation from the GCC states that they will provide $4 billion in balance-of-payments support before the loan can be unlocked.
The Saudi-led GCC, which includes the United Arab Emirates (UAE), Kuwait, Bahrain, Qatar, and Oman, has been one of the biggest donors to Pakistan in recent years and is critical to the country’s economic stability.
Pakistan is already in talks with Saudi Arabia and the UAE to secure the balance-of-payments support and is expected to finalise the details soon. Once the support is confirmed, the IMF loan will be disbursed to Pakistan.
The loan is expected to help the country revive its economy, which has been battered by the pandemic, and will also help it to pay off its mounting debt.