Islamabad:Pakistan and the International Monetary Fund have reached a staff-level agreement for a $1.2 billion tranche.
According to Radio Pakistan, the agreement follows negotiations between an IMF team, led by Ms. Iva Petrova, and Pakistani authorities. The discussions concluded with the agreement on the fourth review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the third review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF).
The staff-level agreement is pending approval by the IMF Executive Board. Upon approval, Pakistan will gain access to approximately $1 billion under the EFF and about $210 million under the RSF. This would bring total disbursements under the two arrangements to around $5.7 billion.
Ms. Petrova highlighted that, supported by the Extended Fund Facility, Pakistani authorities have effectively managed the impact of the Middle East conflict and maintained macroeconomic stability through strong policies. She also noted improvements in Pakistan's sovereign ratings and renewed international market access as indicators of stronger policy credibility.
The IMF statement recognized Pakistan's dedication to maintaining sound macroeconomic policies.
