Pakistan reached a staff-level agreement with the International Monetary Fund in early October, paving the way for up to $1.21 billion in funding. The deal covers the fourth review of the Extended Fund Facility and the third review of the Resilience and Sustainability Facility.
The agreement is subject to approval by the IMF’s executive board. Once approved, the funds will support Pakistan’s foreign exchange reserves and budget.
Why the deal matters
IMF support boosts confidence among investors and lenders. It also unlocks funding from other international partners who link their support to the IMF programme.
Officials said Pakistan had met most of the programme’s targets, though the Fund flagged some areas needing more work.
What comes next
Economists said the government must stick to reforms on taxes, energy and state-owned firms to keep the programme on track. They added that continued IMF backing is key for economic stability.
The Fund’s board is expected to take up Pakistan’s case in the coming weeks. Approval would release the funds in one go, giving quick support to reserves.
Pakistan has been under IMF programmes for many years. Each review checks whether the government is meeting targets on revenue, spending and reforms.
Business leaders welcomed the staff-level deal, saying it removes a big uncertainty. They hope it will encourage foreign investors to bring more money into the country.
The rupee and stock market both reacted positively to the news. Analysts said the deal removes a key risk that had been hanging over the economy.
Comments (0)
Be respectful — comments are moderated.