IMF reaches staff-level agreement with Pakistan for $1.3bn package

Pakistan and the International Monetary Fund (IMF) have signed a staff-level agreement for a $2 billion loan.

Talks between Pakistan and the IMF were successful, after which a staff-level agreement has been reached between the two for the first review.

According to the International Monetary Fund, the IMF team was led by Nathan Porter. The final approval of the agreement will be given by the IMF Board.

If approved, $1 billion will be provided to Pakistan under the Extended Fund Facility.

Pakstan will receive $1.3 billion under a 28-month arrangement to combat climate change and disasters. The total loan amount under the program will be $ 2 billion.

This extended fund facility arrangement will be for 37 months.
Inflation in Pakistan is at its lowest level since 2015, the IMF said, adding that during the 18-month period, Pakistan has made progress in restoring macroeconomic stability despite challenges.

The fund said that the economic situation in Pakistan has improved. Economic activity is likely to increase gradually, but Pakistan still faces environmental threats.

“We are committed to implementing reforms and promoting Pakistan’s social security, supporting Pakistan against natural disasters, increasing budget and investment to combat climate change,” he added.

The IMF said it would also support Pakistan’s efforts for energy sector reforms.