ISLAMABAD: The executive board of the International Monetary Fund (IMF) is expected to approve the latest $1.2 billion tranche under Pakistan’s $7 billion, 37-month Extended Fund Facility (EFF), officials said.
A key agreement was reached between Pakistan and the IMF in March under a broader financial support programme. Additional access to funding running into billions of dollars is expected following approval.
The assistance has been aimed at stabilising the economy, strengthening foreign exchange reserves, and easing pressures on the balance of payments.
A series of economic reforms has already been undertaken by Pakistan. Measures have included subsidy reductions, tax system improvements, privatisation of state-owned enterprises, and reforms in the energy sector.
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Improvement in Pakistan’s economic outlook has been noted by the IMF. However, risks have been highlighted from global conditions and regional tensions, which could place renewed pressure on the economy.
