IMF Approves $7 Billion Extended Fund Facility for Pakistan to Boost Economic Stability
The International Monetary Fund (IMF) Executive Board approved a 37-month Extended Fund Facility (EFF) for Pakistan worth $7 billion on September 25. This program aims to stabilize Pakistan’s economy, with a focus on key objectives such as sustainable public finances, curbing inflation, and strengthening external financial buffers.
In its detailed report, the IMF laid out the conditions for the loan agreement, urging the Pakistani government to implement critical economic reforms. The global lender emphasized expanding the tax base, reducing government spending, and accelerating reforms in state-owned enterprises to support economic growth.
Additionally, the IMF expects Pakistan’s GDP to range between 4 to 4.5% during the fiscal years 2024-2025 to 2029-2030, with inflation predicted to fluctuate between 6.6% and 9% over the same period. The IMF has urged swift action in implementing these policies to ensure long-term macroeconomic stability.
On September 27, Pakistan received the first tranche of $1.03 billion from the IMF, following the program’s approval. The State Bank of Pakistan confirmed the receipt of SDR 760 million (equivalent to USD 1.03 billion), marking the first step in stabilizing the country’s economy through the EFF.
