Staff-Level Agreement Reached Between Pakistan and IMF; Paves Way for $1.21 Billion Loan Disbursement
ISLAMABAD: Pakistan and the International Monetary Fund (IMF) have finished review talks successfully and a landmark staff-level agreement has been reached to release 1.21 billion financial disbursement.
The IMF said Pakistan’s economy has been able to steer clear of the macroeconomic instability triggered by upsets in the region and the energy sector and achieved a significant milestones in the headway of inflation to 10.3 percent in September.
Under the ongoing programmes, total disbursements will increase by 84 per cent up to around $5.7 billion after the approval of this latest tranche.
Key Highlights of the IMF Staff-Level AgreementFinancial Package Breakdown:
With the staff-level agreement, approximately $1 billion comes in under the Extended Fund Facility (EFF) and approximately $210 million under the Resilience and Sustainability Facility (RSF).
Key Economic Recommendations: The global lender suggested a tight monetary policy stance, timely tariff adjustments in the power sector to reduce the circular debt and cost recovery in the gas network.
Structural Reforms and Growth: IMF had recommended Pakistan to shift to the high productivity sectors, promote transparency and privatisation of the state-owned sectors (SOEs) and streamline the tax administration system and increase the social safety net. Final Approval: The staff-level agreement is still pending formal final approval by the IMF Executive Board in Washington.