IMF and Pakistan Reach Staff-Level Agreement Under Extended Fund Facility

The International Monetary Fund (IMF) and Pakistan’s authorities have reached a staff-level agreement on the first review of the country’s 37-month $7 billion Extended Fund Facility (EFF), alongside a new 28-month $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF).

Upon IMF Board approval, Pakistan will gain access to $1 billion under the EFF, bringing total disbursements to $2 billion, according to Khurram Schehzad, Advisor to the Finance Minister.

Key Developments Under the Agreement:

✅ Economic Reforms & Fiscal Strengthening – Provincial amendments to the Agriculture Income Tax will expand the tax base, improve transparency, and support long-term financial stability.

✅ Monetary & Energy Sector Stability – A tight monetary policy will keep inflation within the 5-7% target, ensuring foreign exchange market stability. Meanwhile, energy sector reforms aim to cut circular debt, reduce tariffs, and boost renewable energy adoption.

✅ Governance, Private Sector, & Climate Resilience – The government plans to strengthen state-owned enterprise (SOE) governance, combat corruption, and implement climate resilience initiatives, including smart water management and green mobility projects.

With continued reforms, Pakistan is on track for inclusive growth, economic resilience, and long-term sustainability, marking a significant step toward financial stability and economic prosperity.