A short-term financing deal with the International Monetary Fund (IMF) could help Pakistan avert a default in the near future, according to Prime Minister Shehbaz Sharif on Wednesday.

The local authorities and the IMF team reached an agreement on the $3 billion stand-by agreement (SBA), which will be finalized by the lender’s executive board on July 12.

Foreign investment has been discouraged by months of political chaos as the economy struggles to service crippling external debt.

The rupee has fallen to a record low against the dollar, and the country is unable to afford imports, leading to a severe decline in industrial production.

At a ceremony in Islamabad marking 10 years since the China-Pakistan Economic Corridor (CPEC) was signed, PM Shehbaz said, “The agreement will go through, God willing.”

The board must approve Pakistan’s first installation of $1.1 billion before it comes into effect, according to Finance Minister Ishaq Dar.

According to the premier, Pakistan has avoided the threat of default thanks to the IMF agreement.

“We need to work hard to save the poor from inflation. The wealthy (or those with money) must play a role,” he said.

During the period when Pakistan awaited the staff-level agreement with the IMF, the prime minister thanked President Xi and the Chinese government for their support.

As well, he commended Saudi Arabia, the United Arab Emirates, and the Islamic Development Fund for helping Pakistan overcome its financial crisis.

In his address to the ceremony, the premier termed CPEC a “very transparent” project and said the Chinese government and companies made investments of $25.4 billion investment in various projects.

He said thousands of Chinese workers and their Pakistani counterparts worked day and night to create a history of commitment and vitality of goodwill between the two sides.