IMF reaches staff deal with Pakistan, potentially unlocking US$1.2 billion
BENGALURU: The International Monetary Fund has reached a staff-level agreement with Pakistan on reviews of some of its lending programmes, potentially unlocking about US$1.21 billion in financing pending board approval, the fund said on Wednesday.
The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan, potentially unlocking about US$1.21 billion in financing. This deal, if approved by the IMF's board, would provide Pakistan with US$1 billion under the Extended Fund Facility and US$210 million under the climate-focused Resilience and Sustainability Facility.
These funds would bring total disbursements under the two programmes to around US$5.7 billion. Pakistan's reliance on external financing is crucial for bolstering foreign exchange reserves and meeting debt repayments. The IMF has noted that while Pakistan has successfully navigated the impact of the Middle East conflict and maintained macroeconomic stability, risks remain elevated due to geopolitical tensions, volatile energy prices, tighter global financial conditions, and trade disruptions.
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