IMF to Bolster Pakistan's Recovery with $1.2 Billion Loan Approval

The IMF has reached a staff-level agreement with Pakistan, enabling access to $1.2 billion after board approval. This includes $1 billion from the Extended Fund Facility and $200 million from the Resilience and Sustainability Facility. The agreement aims to stabilize Pakistan's economy, with improvements in macroeconomic stability and market confidence.

The International Monetary Fund (IMF) announced on Tuesday that it has finalized a staff-level agreement with Pakistan. This will allow Pakistan to access $1.2 billion in financial assistance upon approval from the IMF board.

Pursuant to the agreement, the IMF will facilitate a $1 billion disbursement under its Extended Fund Facility, coupled with an additional $200 million from the Resilience and Sustainability Facility. These arrangements bring Pakistan's total disbursements to approximately $3.3 billion. The loan tranche payments hinge on regular reviews and subsequent board approvals.

The IMF noted that Pakistan's economic indicators reflect progressive recovery, with stabilized inflation and strengthened external buffers. Pakistani authorities have committed to maintaining a robust monetary policy and enhancing climate resilience. Financial Minister Muhammad Aurangzeb highlighted imminent plans for capital market engagement, including a green bond in Chinese yuan.

(With inputs from agencies.)