Pakistan Secures IMF Staff-Level Agreement for Financial Stability

Pakistan has reached a staff-level agreement with the IMF, unlocking $1.2 billion in loans, pending approval. The agreement is part of Pakistan's efforts to stabilize its economy and enhance market confidence. Despite challenges from recent floods, authorities remain committed to fiscal stability and structural reforms.

Pakistan and the International Monetary Fund (IMF) have reached a crucial staff-level agreement, which could provide the nation access to $1.2 billion in loan facilities upon approval by the global lender's board. This agreement aims to bolster the country's economic stability and market confidence.

Supported by the IMF's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), the financial package follows discussions led by IMF's Iva Petrova, highlighting Pakistan's economic strides and policy commitments. The agreement's approval is expected to yield numerous benefits, including an improved fiscal balance and contained inflation.

The recent floods have challenged the country's economic outlook, notably affecting the agriculture sector, but authorities pledge to maintain sound economic policies while advancing reforms. Efforts to mobilize revenue and assess flood damage are underway, alongside commitments to prudent monetary policy and climate resilience.

(With inputs from agencies.)