Islamabad(The COW News Digital)The International Monetary Fund (IMF) board is scheduled to hold a crucial meeting today to consider the approval of a new $1.2 billion tranche for Pakistan under the Extended Fund Facility (EFF). The proposed financial package includes $1 billion for general budget support and an additional $200 million earmarked for disaster resilience and sustainable development initiatives.
The IMF had previously conditioned the disbursement on the release of Pakistan’s corruption and governance review report. Pakistan has now submitted the report ahead of the board meeting, fulfilling the pre-requisite for approval.
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Earlier this year, in October, Pakistan and the IMF finalized a staff-level agreement following intensive negotiations conducted between September 24 and October 8 in Karachi, Islamabad, and Washington, D.C. The discussions focused on Pakistan’s fiscal performance, financial policies, structural reforms, and climate-related initiatives.
The IMF staff mission has expressed satisfaction with Pakistan’s economic progress and highlighted improvements in fiscal management. The latest IMF report commended the State Bank of Pakistan’s stringent monetary policy and recommended that these measures be maintained to ensure macroeconomic stability.
Federal officials emphasize that the release of the new tranche will support Pakistan in meeting its development goals and strengthening fiscal buffers. The funds are expected to provide relief for critical sectors and contribute to ongoing efforts to enhance disaster preparedness across the country.
Analysts note that timely disbursement of IMF funds is essential to stabilizing Pakistan’s economy, which has faced challenges including rising inflation and fiscal deficits. The new tranche will not only bolster government resources but also reinforce investor confidence in Pakistan’s economic management.
While the IMF’s decision is awaited, stakeholders are optimistic that the approval of the $1.2 billion package will enhance Pakistan’s financial stability and support ongoing reforms. The board’s meeting is seen as a key milestone in the continued collaboration between Pakistan and the IMF under the Extended Fund Facility program.
