IMF & Pakistan reach staff-level agreement on a 37-month Extended Fund Facility Arrangement of about $7 biln

ISLAMABAD, July 13 (SABAH): International Monetary Fund and Pakistan have reached a staff-level agreement on a 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion. This agreement is subject to approval by the IMF’s Executive Board.

According to the international lender, the new program aims to support Pakistani 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).

The IMF further emphasized that continued strong financial support from Pakistan’s development and bilateral partners would be critical for the program to achieve its objectives.

Meanwhile Finance Minister Senator Muhammad Aurangzeb on Saturday said that the newly inked bailout deal with the International Monetary Fund (IMF) will help achieve macroeconomic stability.

The finance minister made the remarks after the cash-strapped country reached a 37-month, $7 billion aid package deal, with the Washington-based institution, giving much-needed respite to the struggling economy.

Muhammad Aurangzeb said that under the programme “we need to ensure structural reforms and bring self-sustainability in areas of public finance, energy, and state-owned institutions” which he hoped to achieve in the next few years.