Saira Imran Islamabad: Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement under the loan review program. Under this deal, Pakistan will receive $1.2 billion in funding.
According to the IMF’s official statement, Pakistan will get $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF).
The statement said Pakistan successfully achieved its social sector targets. The government also expanded the Benazir Income Support Program (BISP) to reduce poverty and support low-income families.
Read Also: Pakistan’s Recovery at Risk Without Bold Reforms: IIF
The IMF praised Pakistan’s performance in education, health, and economic reforms. It stated that the country’s fiscal deficit is now at its best level in the past 14 years.
According to the IMF, Pakistan has implemented tax reforms and taken policy measures to strengthen the economy. The statement urged close cooperation between federal and provincial governments to expand the tax network and increase revenue.
It further said Pakistan is taking steps to keep inflation between 5% and 7% and stabilize foreign exchange reserves. The State Bank of Pakistan remains committed to maintaining a strict monetary policy.
In the energy sector, the IMF highlighted that Pakistan must reduce circular debt, minimize power losses, and improve the efficiency of distribution companies.
Read Also: Electricity Bill Relief for Flood-Hit Families: IMF Support
The IMF also emphasized reducing government interference in the agriculture sector, increasing productivity, and adopting a new tariff policy to promote global trade.
The statement urged Pakistan to accelerate measures against climate change, use water resources efficiently, and continue energy sector reforms. The IMF mission also expressed deep sympathy over the flood damages in Pakistan and thanked the government for its warm hospitality.
The IMF staff-level agreement with Pakistan marks a major step toward financial stability and economic growth. It strengthens Pakistan’s reform agenda and global confidence in its economy.
