Pakistan, IMF Reach Crucial Agreement Economic Relief Ahead
A staff-level agreement has been reached between Pakistan and the International Monetary Fund (IMF). Negotiations between the IMF and Pakistan were successful, after which a staff level agreement was reached.
According to a statement issued by the International Monetary Fund, the IMF team was led by Nathan Porter. The IMF says that Pakistan has accessed $1 billion under the EFF.
Despite the challenges, Pakistan has made progress in restoring macroeconomic stability over the past 18 months.
According to the IMF statement, inflation in Pakistan is at its lowest level since 2015, Pakistan’s economic situation has improved and further improvement is expected.
The International Monetary Fund says that the total amount received by Pakistan under this program will be $2 billion. According to the statement, another important development has taken place between Pakistan and the International Monetary Fund (IMF) for economic stability.
IMF staff and Pakistani authorities have not only agreed to implement the first review under the Extended Fund Facility (EFF) but have also completed negotiations on a new ‘Resilience and Sustainability Facility’ (RSF) agreement for Pakistan.
The IMF statement said that Pakistan’s economic reform program is being implemented effectively
and the government is committed to gradually reducing the fiscal deficit, keeping public debt at a sustainable level, and keeping inflation under control through a tight monetary policy.
In addition, reforms are being made in the energy sector that will help stabilize the sector by reducing costs, while the government’s reform agenda for economic growth is also being further accelerated.
The new RSF agreement will help Pakistan increase its resilience to natural disasters, address the impacts of climate change by improving budget and investment planning, ensure efficient and productive use of water, strengthen the information infrastructure for climate risk analysis, and introduce energy sector reforms that are consistent with environmental protection goals.
This agreement is a significant step forward for Pakistan, which will not only enable economic recovery but also help it achieve its future goals of financial independence.
