IMF and Pakistan Secure $1 Billion EFF Deal

The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement providing Pakistan access to $1 billion under an extended fund facility. Pakistan's economy shows improvement with declining inflation and stronger financial conditions despite global challenges. The agreement awaits IMF board approval.

The International Monetary Fund (IMF) announced on Tuesday that its staff and Pakistani authorities have reached a staff-level agreement. This accord will enable Pakistan to access approximately $1 billion through an extended fund facility, pending approval.

Over the last 18 months, Pakistan has achieved substantial progress in stabilizing its macroeconomic framework, courtesy of a $7 billion IMF bailout. In March, inflation is expected to remain steady between 1% and 1.5%, fueled by restoration of confidence and macroeconomic stability.

Despite facing challenging global conditions, Pakistan's financial outlook has improved with lower inflation rates and stronger external balances. The IMF, however, cautioned against risks like geopolitical shocks and global financial tightening, which could threaten the country's macroeconomic stability.

(With inputs from agencies.)