Islamabad: Pakistan has finalized a $7 billion staff-level agreement with the International Monetary Fund (IMF), pending approval from the IMF Executive Board, while Federal Finance Minister announced structural reforms. Under the 37-month loan program, Pakistan is set to receive $7 billion, aimed at strengthening the country’s economic stability and implementing structural reforms.
Finance Minister emphasized the necessity of structural reforms to strengthen public finances, energy sector, and governance institutions, planning reforms in the coming years. The IMF program aims to support Pakistan in achieving macroeconomic stability, monetary policy effectiveness, sustainable growth, and enhancing tax foundations, facilitating economic resilience.
The final approval of the new loan program will be decided by the IMF Executive Board. Pakistan is expected to receive $7 billion in installments over 37 months, contributing to economic stability and boosting tax revenues with a potential increase of up to 3% of GDP from taxes. Agricultural sector will also be brought into the tax net to ensure sustainable growth, while improving administrative affairs of state-owned enterprises.
The statement also highlighted the need for creating an equitable environment for investment and enhancing human resources, along with increasing social protection under the Ehsaas program. Support from friendly countries will also be crucial in achieving these goals for Pakistan.
Pakistan Secures $7 Billion IMF Loan Agreement, Finance Minister Announces Structural Reforms
