Fresh off his election win earlier this year, Prime Minister Imran Khan is desperately trying to keep Pakistan’s economy afloat.
The country’s foreign reserves are dangerous low at $8 billion, which is enough to pay for just two months of imports. The rupee has also plunged, losing approximately 25% of its value compared to December of last year. But perhaps most alarming is Pakistan’s current account deficit, which continues to widen and is expected to hit $18 billion for fiscal year 2018, or around 5.9% of GDP going by IMF estimates.
Islamabad turned to the IMF for help earlier this month, asking for around $7 billion in assistance. If approved, it would be the largest of the 13 bailouts Pakistan has requested from the international fund over the past 30 years.
Saudi Arabia has also stepped in to help. The Saudi government approved a support package worth at least $6 billion on Tuesday. The package includes a year-long $3 billion deposit for balance-of-payment support and a deferment of payments owed for oil imports up to the remaining $3 billion.
