The International Monetary Fund (IMF) Executive Board approved a 37-month Extended Fund Facility (EFF) for Pakistan on September 25, providing about US$7 billion to bolster the country’s economic stability and growth.
The IMF’s USD 7 billion facility targets sustainable public finances, reduces inflation, and strengthens external buffers.
The IMF detailed new loan conditions in a comprehensive report, urging the Pakistan government to stabilize its macroeconomic landscape in alignment with the agreement’s stipulations. The government implements economic reforms and creates a favourable environment for private sector growth to invigorate the economy.
Furthermore, the IMF advises Pakistan to widen its tax base, cut government expenditures, and accelerate reforms in state-owned enterprises.
The report’s economic projections anticipate Pakistan’s GDP growth to range from 4% to 4.5% from FY2024-25 to FY2029-30, with inflation expected to stabilize between 6.6% and 9%.
Emphasizing the importance of policy enforcement, the IMF highlighted the crucial need for implementing these economic reforms.
Following the board’s approval, Pakistan received the first tranche from the IMF on September 27. The State Bank of Pakistan confirmed the receipt of SDR 760 million, equivalent to USD 1026.9 million, marking a significant step in the nation’s financial reform journey.
