Washington DC September 12 2024: The International Monetary Fund (IMF) on Thursday confirmed that the Fund’s board will meet on September 25 to discuss the USD 7 billion Extended Fund Facility (EFF) to Pakistan.
Addressing a press briefing today, IMF’s spokesperson Julie Kozack said that the Fund had reached a staff-level agreement with Pakistan on the EFF in July.
“We are very happy that we can say now that the board meeting is scheduled to take place on September 25,” she said.
“This is following Pakistan obtaining the necessary financing assurances from its development partners. The new EFF arrangement… follows the successful implementation of the 2023 nine-month standby arrangement.”
She added that consistent policymaking has supported economic stability in Pakistan, most notably a resumption of growth, significant disinflation, and a significant increase in the country’s international reserves.
Asked if Pakistan has received those assurances, she responded, “Yes.”
The nation has arranged more than USD 2 billion in financing and assurances from lenders other than the IMF, Jameel Ahmad, governor of the State Bank of Pakistan, said at an analyst briefing after announcing the policy rate Thursday. The external funding was seen as the final hurdle for an IMF loan.
“All those assurances and external financing have already been arranged by the government and I don’t see any further hurdle now in taking our case to the board,” said Ahmad.
Earlier on July 12th 2024, IMF staff and the Pakistani authorities have reached a staff-level agreement on a 37-month Extended Fund Facility Arrangement (EFF) of about USD 7 billion. This agreement is subject to approval by the IMF’s Executive Board.
The new program aims to support the authorities’ efforts to cement macroeconomic stability and create conditions for a stronger, more inclusive, and resilient growth. This includes steps to strengthen fiscal and monetary policy and reforms to broaden the tax base, improve State Owned Enterprises’ (SOE) management, strengthen competition, secure a level playing field for investment, enhance human capital, and scale up social protection through increased generosity and coverage in the Benazir Income Support Program (BISP).
