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Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement (SLA) for the disbursement of approximately USD 1.2 billion under two separate arrangements. The two sides successfully concluded the third review of the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), the IMF said on Saturday.

 

The IMF mission held talks with Pakistani officials in Karachi and Islamabad from February 25 to March 2, but left without an agreement. The talks continued in virtual format, and an agreement was reached.

 

The fund confirmed the development through a statement, saying “IMF staff and the Pakistani authorities have reached a staff-level agreement on the third review under Pakistan’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).” “IMF reaches Staff-Level Agreement on the Third Review for the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the Second Review for 28-month arrangement under the Resilience and Sustainability Facility (RSF),” Pakistan’s Ministry of Finance said on X.

 

IMF mission chief Iva Petrova said, subject to IMF board approval, Pakistan will have access to about USD 1.0 billion (SDR 760 million) under the EFF and about USD 210 million (SDR 154 million) under the RSF.

 

She said that Pakistan authorities remain committed to pursuing sound and prudent macroeconomic policies to preserve the recent gains in macro-financial stabilisation, while deepening structural reforms to accelerate growth and strengthening social protection to mitigate the impact of volatile energy prices on the most vulnerable.

 

Pakistan joined the IMF’s EFF programme of USD 7 billion in 2024, which focuses on strengthening the economy, rebuilding market confidence, sustaining fiscal reforms, and reducing energy sector inefficiencies.

 

Last year, Pakistan got a Resilience and Sustainability Facility (RSF) facility worth USD 1.4 billion, aiming to build climate resilience, strengthen disaster management, improve water efficiency, and bolster green financing.

 

Also read: IMF exposes Pakistan's governance failures