Pakistan, IMF reach agreement to resume EFF programme: Bloomberg

Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF) to resume its loan programme, reported Bloomberg on Wednesday, quoting a government official familiar with the matter.

A $1.2-billion disbursement is expected in August after the IMF’s management gives final approval, the official, asking not to be identified before a formal announcement, was quoted as saying.

Business Recorder reached out to the IMF resident representative and the finance ministry, but did not receive a reply till the filing of this report.

However, reports indicate a formal announcement on Pakistan's Extended Fund Facility (EFF) would be made soon.

The revival of the programme is crucial for Pakistan that has seen its foreign exchange reserves fall relentlessly with import cover currently standing at less than two months. During the week ended on 30-Jun-2022, SBP’s reserves decreased by $493 million to $9.82 billion due to external debt and other payments.

At the same time, the rupee has consistently lost value against the dollar, and closed at 210.1 on Wednesday after falling another 1.04%.

Meanwhile, the Bloomberg report added that the Washington-based lender has also agreed to increase the loan programme size by $1 billion, taking it to a total of $7 billion, and extend it through June 2023.

Finance Minister Miftah Ismail had earlier said that Islamabad has requested the IMF to increase the size and duration of its $6-billion programme.