Pakistan and IMF Reach Staff-Level Agreement, $1.21 Billion Financing Expected
ISLAMABAD:Pakistan and the International Monetary Fund (IMF) have reached a **staff-level agreement** following the completion of economic review talks, paving the way for the release of approximately **$1.21 billion** to Pakistan.
According to an IMF statement issued after the review discussions, the agreement covers the **fourth review of Pakistan’s Extended Fund Facility (EFF) programme** as well as the **third review under the Resilience and Sustainability Facility (RSF)**.
The IMF Executive Board will now consider approval of the agreement, after which Pakistan is expected to receive $1.21 billion under the programme.
The IMF said Pakistan had made strong efforts to meet the agreed economic targets and that the Fund-supported programme had helped strengthen macroeconomic stability and accelerate the country’s reform process.
Under the climate financing programme, Pakistan is expected to receive an additional **$200 million**. The IMF said Pakistan’s economic performance had remained resilient despite challenging external conditions and noted that the government had managed the oil crisis effectively.
According to the statement, Pakistan’s GDP growth reached **4% during the first half of the fiscal year**, compared with **3.6% last year**.
The IMF said inflation had declined and was moving back towards the State Bank’s target. Pakistan has also assured the Fund that it will increase spending on the education and health sectors.
The primary surplus is expected to remain at around **2% of GDP**, while discussions under **Article IV** have also been successfully concluded.
Meanwhile, Pakistani government sources said the country was fully implementing the IMF programme and accelerating its privatisation agenda.
The sources said efforts were also underway to reduce losses of electricity distribution companies and contain the circular debt in the gas sector.
The staff-level agreement marks another step forward in Pakistan’s ongoing economic reform programme, subject to formal approval by the IMF Executive Board.
