Ben Farmer, in Islamabad
13 May 2019
Imran Khan’s Pakistan government will bring in painful tax increases, subsidy cuts and devalue the rupee in return for a $6bn (£4.5bn) bailout tentatively agreed with the International Monetary Fund.
The former cricketer’s government on Sunday reached a preliminary agreement with the Washington-based lender for a 39-month loan to stave off a balance of payments crisis.
Mr Khan appeared to have bowed to IMF demands for sweeping reforms to the economy, despite only months ago saying he refused to beg to the lender. He inherited a looming economic crisis when elected last year, with a high current account deficit and dwindling foreign currency reserves.