Pakistan and the International Monetary Fund (IMF) have successfully concluded negotiations, reaching a staff-level agreement for a $2 billion loan.
According to the IMF, the discussions were led by Nathan Porter, and the agreement now awaits final approval from the IMF’s Executive Board. If approved, Pakistan will receive $1 billion under the Extended Fund Facility (EFF), while an additional $1.3 billion will be provided under a 28-month arrangement to address climate change and disaster management. This brings the total loan amount to $2 billion under a 37-month EFF arrangement.
IMF: Pakistan’s Economic Situation Has Improved
The IMF stated that Pakistan’s inflation rate is at its lowest since 2015, and the country has made progress in restoring macroeconomic stability despite challenges over the past 18 months. Economic activity is expected to grow gradually, though environmental risks remain a concern.
IMF Pledges Support for Pakistan’s Economic and Climate Initiatives
The IMF reaffirmed its commitment to supporting Pakistan’s economic reforms and social protection programs. The organization also pledged assistance in mitigating natural disasters, increasing budget allocations for climate change, and backing energy sector reforms.
Finance Minister’s Statement
Following the agreement, Finance Minister Muhammad Aurangzeb told Geo News that Pakistan is committed to implementing tax, energy, and public sector reforms. He emphasized the government’s determination to boost production and exports to drive economic growth.
