A staff-level agreement has been reached between Pakistan and the International Monetary Fund (IMF), under which Pakistan will receive $1.2 billion.
The IMF has announced that a staff-level agreement has been reached with Pakistan on a loan program, and Pakistan will receive $1.2 billion upon approval by the Executive Board.
A statement issued by the IMF said that Pakistan’s economic program under the Extended Fund Facility supported by the IMF is gradually moving towards stability and restoration of market confidence.
The statement said that in the fiscal year 2025, Pakistan’s current account remained in surplus for the first time in 14 years, the fiscal balance program was better than the target, inflation is under control, and foreign exchange reserves have improved. Pakistan’s economic growth is likely to be 3.25 to 3.5 percent.
The IMF also appreciated Pakistan’s environmental reform program. The statement said that the recent floods affected millions of people, more than 1,000 people died, and crops and houses were severely damaged.
The IMF said in the statement that comprehensive reforms and policies must be implemented consistently to address environmental risks.
The IMF acknowledged that the government is committed to advancing the agenda of energy sector sustainability, fiscal discipline, and structural reforms.
Earlier, Finance Minister Senator Muhammad Aurangzeb had said that constructive discussions are underway with the IMF mission.
In an interview with a foreign news agency, he said that Pakistan will issue the first Green Panda Bond before the end of this year.
He said that progress has been made on the privatization of PIA and three power distribution companies. The resumption of flights to Europe and the UK has made the national airline attractive to investors. Five groups have expressed interest in privatizing the national airline.
