Pakistan, IMF negotiations successful, staff-level agreement reached

Islamabad: Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement for a $2 billion loan.

Negotiations between Pakistan and the IMF were successful, after which a staff-level agreement for the first review between Pakistan and the IMF was reached.

The IMF team was led by Nathan Porter. The final approval of the agreement will be given by the IMF board.

If approved, Pakistan will be provided with $1 billion under the Extended Fund Facility.

Pakistan will receive $1.3 billion under a 28-month arrangement to combat climate change and disasters. The total loan amount under the program will be $2 billion.

This Extended Fund Facility arrangement will be for 37 months.

The IMF says that inflation in Pakistan is at its lowest level since 2015. Despite challenges, Pakistan has made progress in restoring macroeconomic stability over the past 18 months.

The IMF said that the economic situation in Pakistan has improved. Economic activity is likely to increase gradually, but Pakistan still faces environmental risks.

The International Monetary Fund further said that it is committed to implementing reforms and promoting Pakistan's social protection. It will help Pakistan against natural disasters and will continue to support budget and investment increases to combat climate change.

The IMF said that it will also support Pakistan's efforts for energy sector reforms.

Finance Minister Muhammad Aurangzeb said that he is determined to put the country on the path of productive and export-oriented growth.

The Finance Minister stated that Pakistan is committed to implementing reforms related to taxes, energy, and government institutions.