IMF reaches staff-level agreement with Pakistan, potentially unlocking $1.2bn
The IMF has reached a staff-level agreement with Pakistan on reviews of its lending programmes, potentially unlocking about $1.21bn pending board approval.
The International Monetary Fund has reached a staff-level agreement with Pakistan on reviews of some of its lending programmes, potentially unlocking about $1.21 billion in financing pending board approval, the fund said on Wednesday (Reuters; CNA).
If the board approves the deal, Pakistan could access about $1 billion under the Extended Fund Facility and $210 million under the climate-focused Resilience and Sustainability Facility, bringing total disbursements under the two programmes to around $5.7 billion.
“Supported by the EFF, the authorities have successfully navigated the impact of the Middle East conflict, and strong policies have helped preserve macroeconomic stability,” the fund said.
The IMF cautioned that risks remain elevated due to geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions. Pakistan remains reliant on external financing to bolster foreign exchange reserves and meet debt repayments.
Earlier this year, S&P Global Market Intelligence economist Ahmad Mobeen described Pakistan as the most vulnerable major Asia-Pacific economy to a prolonged Middle East conflict, given its dependence on Gulf energy imports, remittances and financing support from the region.
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