IMF, Pakistan reach 1st staff level agreement under EFF

The International Monetary Fund (IMF) and Pakistani authorities have successfully reached a staff-level agreement on two critical financial arrangements. The first is the review of Pakistan’s 37-month $7 billion Extended Fund Facility (EFF), aimed at supporting economic reforms and stability. The second is a new 28-month $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF), designed to bolster Pakistan’s efforts in climate resilience and sustainable development. This milestone was announced by Khurram Schehzad, Advisor to the Finance Minister.

Khurram Schehzad, Advisor to the Finance Minister, shared on X that, upon receiving Board approval, Pakistan will gain access to approximately $1 billion under the Extended Fund Facility (EFF). This will raise the total disbursements under the EFF to nearly $2 billion, marking a substantial financial step towards economic stabilization and progress for the country.

Khurram Schehzad said, Pakistan was making significant strides in economic reforms, focusing on tax equity, monetary stability, energy sector transformation, and climate resilience. Supported by the IMF, these efforts are laying the foundation for a sustainable and prosperous future.

He also highlighted certain key developments under the staff level agreement as follows: Pakistan’s Reform Agenda: Tax & Fiscal Strengthening – Provinces amend Agriculture Income Tax to broaden the base & enhance fairness, strengthening fiscal transparency and setting the stage for long-term economic stability.

Monetary Stability & Energy Sector Transformation: Tight monetary policy keeps inflation within target (5–7%) and ensures FX market stability. Energy sector reforms reduce circular debt, lower tariffs, and accelerate renewable energy,
Governance, Private Sector & Climate Resilience: Advancing SOE governance, fighting corruption & driving climate resilience with smart water use and green mobility initiatives to ensure a sustainable and thriving future for Pakistan.

Positive Outlook Ahead: With continued reforms and dedication to sustainability, Pakistan is poised for inclusive growth, a stronger economy, and a resilient environment. The journey towards a prosperous future continues.