Context
IMF approved $1.2 bn for Pakistan as part of its bailout package, citing “significant progress” in stabilizing its crisis-hit economy. What is an IMF Bailout?
IMF bailout = Emergency loan given to a country facing severe economic trouble (low forex, high debt, inflation) to prevent economic collapse.
Comes with conditions:
• Fiscal tightening
• Subsidy cuts
• Tax/structural reforms



