Staff-level agreement with IMF, Pakistan to get $1.2bn

Islamabad: An agreement has been reached between Pakistan and the International Monetary Fund (IMF) on the review of the loan program, under which Pakistan will receive $1.2 billion.

According to a statement issued by the IMF, Pakistan will receive approximately $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF).

The statement said that Pakistan has been successful in achieving social sector goals. At the same time, important steps have been taken to reduce poverty by increasing funds for the Benazir Income Support Program.

According to the IMF statement, the performance of the federation and the provinces in the sectors of education, health, and economic reforms was appreciated, and it was said that Pakistan’s fiscal deficit is at its best level in the last 14 years.

According to the International Monetary Fund, Pakistan has accelerated the implementation of tax reforms and policy-level measures, emphasizing cooperation between the federation and the provinces to expand the tax net and increase revenue.

The statement said that steps are underway in Pakistan to keep inflation within the range of 5 to 7 percent and stabilize foreign exchange reserves, while the State Bank is committed to maintaining a tight monetary policy.

Regarding the energy sector, the IMF clarified that Pakistan must achieve the goals of reducing circular debt, reducing electricity losses, and improving the efficiency of distribution companies.

The IMF further said that a new tariff policy must be adopted to reduce government intervention in the agricultural sector, increase production, and promote global trade.

The statement also emphasized accelerating measures to address climate change, better use of water resources, and continuation of energy reforms. The IMF mission expressed deep sorrow and sympathy for the flood damage in Pakistan and thanked the Government of Pakistan for its hospitality.