On Thursday, 13 July, the International Monetary Fund (IMF) and Pakistani authorities reached a preliminary agreement on the policies to be adopted to complete 7th and 8th review of Extended Fund Facility (EFF). Upon approval by IMF’s Executive board, it will pave way for release of $1.17bn, making the overall payments at $4.2bn so far.
The support will help shore up Pakistan’s depleting foreign exchange reserves amid fiscal challenges and downward economic spiral following absence of political stability.
The Executive board will also consider extending the EFF till end-June 2023, to support program implementation and its fiscal needs, bringing the total volume of support to $7bn.
Support is expected to stabilize the economy by implementation of FY23 budget, help fill trade gaps as well as expanding the social safety net and enable the government to undertake critical structural reforms to improve performance of state-owned enterprises.
