Islamabad, Pakistan – The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement on a comprehensive program that could provide the country with a $7 billion loan over 37 months. The agreement is subject to approval by the IMF Executive Board and confirmation of financing from Pakistan’s development and bilateral partners.
The program aims to build on the macroeconomic stability achieved over the past year by intensifying efforts to enhance public finances, curb inflation, rebuild external buffers, and eliminate economic distortions to promote private sector-led growth.
The authorities’ policy objectives include sustainable public finances, a fairer balance of fiscal effort between the federal and provincial governments, reducing inflation, deepening access to financing, and building strong external buffers.
The program also includes measures to restore energy sector viability, promote private sector and export dynamism, and advance anti-corruption and governance reforms.
If approved, the loan will provide critical support to Pakistan’s economy, which has been facing significant challenges in recent years.
Key Highlights:
- $7 billion loan program over 37 months
- Agreement subject to IMF Executive Board approval and financing confirmation from development and bilateral partners
- Program aims to enhance public finances, curb inflation, and promote private sector-led growth
- Policy objectives include sustainable public finances, fairer fiscal balance, and reducing inflation
- Measures to restore energy sector viability and promote private sector dynamism
- Anti-corruption and governance reforms also part of the program
