The International Monetary Fund (IMF) staff and Pakistani authorities have reached a staff-level agreement on the first review of Pakistan’s 37-month, $7 billion Extended Fund Facility (EFF), along with a new 28-month, $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF), Advisor to the Finance Minister Khurram Schehzad announced on Wednesday.
Upon approval by the IMF Board, Pakistan will gain access to approximately $1 billion under the EFF, raising total disbursements under the program to $2 billion, Schehzad stated on X.
He emphasized that Pakistan is making notable progress in economic reforms, with a strong focus on tax equity, monetary stability, energy sector transformation, and climate resilience. Backed by the IMF, these efforts are shaping a more sustainable and prosperous economic future.
Key Highlights of the Staff-Level Agreement:
🔹 Tax & Fiscal Strengthening: Provinces to amend Agriculture Income Tax laws to expand the tax base, enhance fairness, and improve fiscal transparency, ensuring long-term economic stability.
🔹 Monetary Stability & Energy Sector Transformation: A tight monetary policy aims to keep inflation within the 5–7% target range and stabilize the foreign exchange market. Energy sector reforms focus on reducing circular debt, lowering tariffs, and accelerating the shift to renewable energy.
🔹 Governance, Private Sector, & Climate Resilience: Strengthening state-owned enterprise (SOE) governance, combating corruption, and promoting climate resilience through smart water management and green mobility initiatives.
Optimistic Outlook:
With sustained reforms and a commitment to long-term sustainability, Pakistan is on track for inclusive growth, a stronger economy, and a more resilient future. The journey toward economic stability and prosperity continues.