IMF and Pakistan Solidify Crucial Loan Agreement

The International Monetary Fund and Pakistan have reached a staff-level agreement enabling Pakistan's access to $1.2 billion, pending a board review. This comprises $1 billion from the Extended Fund Facility and $200 million from the Resilience and Sustainability Facility. Previously, an IMF mission left without signing agreements.

The International Monetary Fund (IMF) confirmed on Tuesday that it has reached a decisive staff-level agreement with Pakistan, unlocking access to $1.2 billion pending a board review. This financial pathway results from a deal on Pakistan's loan programme.

The agreement consists of $1 billion from the Extended Fund Facility and $200 million from the Resilience and Sustainability Facility. Pakistan's finance minister, Muhammad Aurangzeb, emphasized this preliminary deal as a vital step toward securing further financial support from the IMF.

Previously, an IMF team had departed from Pakistan without inking agreements on its two flagship programmes valued at $8.4 billion in total. This latest development is crucial for advancing the financial ties between the IMF and Pakistan.

(With inputs from agencies.)