Pakistan Secures IMF Agreements for Economic Stability Amid Global Challenges

Pakistan has reached a staff-level deal with the IMF on its Extended Fund Facility and Resilience and Sustainability Facility, totalling USD 8.3 billion. The agreements aim to boost Pakistan's economic reforms, focusing on tax equity and climate resilience amid global economic uncertainties.

In a significant development, Pakistan and the International Monetary Fund (IMF) have finalized a staff-level agreement concerning the first review of a USD 7 billion Extended Fund Facility (EFF) and a new USD 1.3 billion agreement under the Resilience and Sustainability Facility (RSF), as confirmed by sources on Tuesday.

Khurram Schehzad, Advisor to the Pakistani Finance Minister, noted Pakistan's robust progress in economic reforms, underscoring tax equity, monetary stability, and sectors such as energy and climate resilience. Despite global challenges, Pakistan made substantial progress in restoring stability with improved financial conditions, despite some looming economic risks, according to the IMF.

The IMF stressed the importance of climate resilience for Pakistan, highlighting adaptation measures. The emphasis remains on maintaining progress by enhancing public finances, preserving price stability, and fostering inclusive growth driven by the private sector, as acknowledged by both the IMF and Pakistani officials.

(With inputs from agencies.)