KARACHI – Pakistan is expected to clinch USD7 Billion Extended Fund Facility (EFF) as International Monetary Fund (IMF) Board Meeting is scheduled for September 25.
The US based lender announced that its board will convene on September 25 to review the $7 billion Extended Fund Facility (EFF) for Pakistan. The Asian nation was expected to finalise the agreement with the IMF in August, following the approval of a 37-month program in July.
To meet the IMF’s requirements, Pakistan increased its tax revenue target by 40% and raised energy prices. Additionally, Islamabad completed its previous $3 billion loan program in April and received credit rating upgrades from top rating agencies.
Pakistan reached staff-level agreement with IMF in mid 2024 and now board meeting is scheduled for September 25. This follows Pakistan securing the necessary financing assurances from its development partners. The new EFF arrangement builds on the successful implementation of the 2023 nine-month standby arrangement.
IMF spokesperson noted that consistent policymaking has contributed to economic stability in Pakistan, including renewed growth, notable disinflation, and an increase in international reserves.
When asked about the financing assurances, Kozack confirmed that they had been secured. Earlier, State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that Pakistan had arranged over $2 billion in financing from sources other than the IMF, viewing this as the final requirement for the loan.
During an analyst briefing, Ahmad expressed confidence that all necessary assurances and external financing were in place and anticipated no further obstacles in presenting Pakistan’s case to the IMF board.
