IMF board approves Pakistan’s $7bn bailout EFF program
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KARACHI: The International Monetary Fund (IMF) Executive Board has finally approved Pakistan’s 37-month Extended Fund Facility Arrangement (EFF) of about $7 billion on Wednesday.
An IMF statement said that its executive board has agreed to release the funds over 37 months to support Pakistan’s economic stabilization efforts.
“The Executive Board of IMF approved a 37-month new Stand-By Arrangement SBA for Pakistan for an amount of $7 billion to support the authorities’ economic stabilization program,” the statement said.
Key reforms include strengthening fiscal and monetary policies, expanding the tax base, improving state-owned enterprises’ management, enhancing competition, and boosting social protections under the Benazir Income Support Program (BISP). This package is expected to provide much-needed relief to Pakistan’s struggling economy.
According to the governor State Bank of Pakistan (SBP), Jameel Ahmed, two installments from the IMF will be received in current fiscal year.
Pakistan received this IMF Executive Board approval after assurance from the Saudi Arab, China and UAE. All the countries rolled over their deposit in State Bank, meanwhile Saudi Arab and China further assured the IMF and Pakistani government for their further investment in different projects of Pakistan.
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