IMF reaches staff deal with Pakistan, potentially unlocking $1.2 billion
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
Oct 7 : The International Monetary Fund has reached a staff-level agreement with Pakistan on reviews of some of its lending programs, potentially unlocking about $1.21 billion in financing pending board approval, the fund said on Wednesday.
• 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 programs to around $5.7 billion.
• Pakistan remains reliant on external financing to bolster foreign exchange reserves and meet debt repayments.
• "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.
• Risks remain elevated, however, due to geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions, the IMF said.
• Pakistan is 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, Ahmad Mobeen, principal economist at S&P Global Market Intelligence, said earlier this year.
