Pakistan Wins Initial Nod for $3 Billion IMF Bailout Deal

  • IMF executive board to consider approval in mid-July
  • Nation’s dollar bonds rallied after the deal was announced
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Pakistan clinched an initial approval from the International Monetary Fund for a $3 billion loan program, lowering the risk of a sovereign default. The nation’s dollar bonds rallied.

The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July, the Washington-based lender said in a June 29 statementBloomberg Terminal on its website. The nine-month arrangement is separate from the IMF-supported program that expires June 30 and will help the country’s transition to a newly elected administration later this year.