Pakistan, IMF reach staff-level agreement: Report - Mentor's News

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Wednesday, July 13, 2022

Pakistan, IMF reach staff-level agreement: Report

IMF
The executive board of the International Monetary Fund (IMF) and Pakistan on Wednesday reached a staff-level agreement that revived the $6 billion Extended Fund Facility (EFF) programme for the country.

The move comes after the coalition government adhered to all "tough" conditions set by the global lender, including an increase in the price of petroleum products and energy tariffs, among others.

The official announcement in this regard is expected soon.

The staff-level agreement will pave way for a $1.2 billion disbursement, which is expected in August.

The disbursal would offer relief to Islamabad as the country's foreign-exchange reserves are depleting so much so that they can only cover less than two months of imports.

In June, Pakistan and the Fund staff achieved substantial progress to strike a consensus on budget 2022-23 after which the IMF shared a draft Memorandum of Economic and Financial Policies (MEFP).

Finance Minister Miftah Ismail on June 28 announced that Pakistan had received the MEFP from the IMF for the combined seventh and eighth reviews.

The IMF in June 2019 approved a three-year, $6 billion loan "to support Pakistan’s economic plan, aimed at returning "sustainable growth to the country’s economy and improving the standards of living".



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