IMF Staff, Pak authorities reach staff-level agreement on first review under Pak’s 37-month $7bn EFF & on a new 28-month $1.3bn arrangement under RSF

ISLAMABAD, March 26 (SABAH): Prime Minister Shehbaz Sharif on Wednesday commended his team for unlocking the new $1.3 billion arrangement with the International Monetary Fund (IMF), along with a successful first review of the ongoing 37-month bailout programme.

The announcement from the global money lender came early Wednesday, saying that it had reached a staff-level agreement (SLA) with the Pakistani authorities. Speaking at a federal cabinet meeting , the premier thanked the members of his team, saying it was through “day and night” efforts that led to the achievement of this milestone.

“This was through teamwork, no doubt,” he said, adding that some had questioned whether the government would be able to achieve the feat without the mini-budget. “With God’s grace, the mini-budget did not come,” he said, adding that despite challenging circumstances, with terrorism prevalent in two provinces and inflation reaching historic highs amid other problems, the government as well as the nation persevered.

“Particularly, the common people who faced difficulties, if their sacrifices weren’t there, the staff-level [agreement] would not have been possible as they face the burden of inflation,” he stressed and said that the salaried class and the provinces contributed to the milestone.

He went on to commend the provinces for passing the tax laws to meet the requirements of the Fund amid reluctance and concerns.

In February, in a rare show of unity, the Sindh provincial assembly had unanimously passed the Sindh Agricultural Income Tax Bill. Punjab and Khyber Pakhtunkhwa had already passed the amended agricultural income tax law that was a part of the federal government’s commitments under the IMF’s $7bn agreement spanning 37 months.

IMF Staff, Pakistani authorities reach a staff-level agreement on the first review under Pakistan’s 37-month $7bn EFF & on a new 28-month $1.3bn arrangement under RSF

IMF Staff and the Pakistani authorities have reached a staff-level agreement on the first review under Pakistan’s 37-month $7bn Extended Fund Facility (EFF) and on a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RSF).

Upon Board approval, Pakistan will have access to about $1bn under the EFF, bringing total disbursements under the EFF to about $2bn.

Pakistan is making significant strides in economic reforms, focusing on tax equity, monetary stability, energy sector transformation, and climate resilience. Supported by the IMF, these efforts are laying the foundation for a sustainable and prosperous future.

Here’s a glimpse of the key developments under the SLA including Pakistan’s Reform Agenda: Tax & Fiscal Strengthening – Provinces amend Agriculture Income Tax to broaden the base & enhance fairness, strengthening fiscal transparency and setting the stage for long-term economic stability. Monetary Stability & Energy Sector Transformation: Tight monetary policy keeps inflation within target (5–7%) and ensures FX market stability. Energy sector reforms reduce circular debt, lower tariffs, and accelerate renewable energy. Governance, Private Sector & Climate Resilience: Advancing SOE governance, fighting corruption & driving climate resilience with smart water use and green mobility initiatives to ensure a sustainable and thriving future for Pakistan and positive Outlook Ahead: With continued reforms and dedication to sustainability, Pakistan is poised for inclusive growth, a stronger economy, and a resilient environment. The journey towards a prosperous future continues.