NEW YORK: The International Monetary Fund (IMF) Executive Board is scheduled to meet today to consider approval of a $1.2 billion aid tranche for Pakistan under the Extended Fund Facility (EFF).
The package includes $1 billion for general support and $200 million to enhance disaster resilience and sustainable development.
Ahead of the meeting, Pakistan released an IMF-backed report on corruption and governance, fulfilling the Fund’s pre-condition for board approval.
The report follows staff-level agreements reached between Pakistan and the IMF in October, after negotiations held from September 24 to October 8 in Karachi, Islamabad, and Washington.
The discussions reviewed Pakistan’s fiscal performance, financial policies, reforms, and climate-related measures, with the IMF staff mission expressing satisfaction over the country’s economic progress. The Fund also praised the State Bank of Pakistan’s strict monetary policy, recommending its continuation.
Economic experts note that IMF bailout packages are crucial for Pakistan, which has long relied on financial support from bilateral partners such as Saudi Arabia, China, and the UAE, as well as multilateral institutions including the World Bank, Asian Development Bank, and Islamic Development Bank.
Pakistan continues to face a prolonged macroeconomic crisis affecting foreign reserves, fiscal resources, and the balance of payments. However, since 2022, Islamabad has achieved some successes, including a current account surplus and a significant reduction in inflation.