The International Monetary Fund (IMF) on Friday approved the immediate disbursement of approximately $ 1 billion to Pakistan under the extended fund installation (EFF) in progress and allowed an additional agreement for the resistance and resistance installation of $ 1.4 billion (RSF).
In a statement issued today, the IMF said that its Executive Board completed the first review of the Pakistan Economic Reform Program backed by the EFF Agreement.
“This decision allows an immediate disbursement of around $ 1 billion (SDR 760 million), which carries the total disbursements under the agreement to approximately $ 2.1 billion (SDR 1.52 billion). In addition, the IMF Executive Board approved the application of the authorities of an agreement under the RSF, with access to approximately $ 1.4BN (SDR 1 billion),” he said.
He pointed out that Pakistan’s political efforts had already delivered a “significant progress” to stabilize the economy and the reconstruction of trust, in the midst of a challenging global environment.
“The fiscal yield has been strong, with a main surplus of two percent of the gross domestic product reached in the first half of fiscal year 2015, keeping Pakistan on the way to meet the final objective of the FY-FY25 of 2.1pc of GDP Pakista is reduced by a total of 1100. June 2025. Gross reserves were $ 10.3 billion at the end of April, compared to $ 9.4 billion in August 2024, and it is projected that they will reach $ 13.9 billion at the end of June 2025 and continue to be rebuilt through the average term. ”
Meanwhile, he said that the RSF would support the efforts of the authorities to reduce vulnerability to natural disasters and develop economic and climatic resilience.
A statement from Prime Minister’s office (PMO) said that Prime Minister Shehbaz Sharif expressed his satisfaction for the approval and “failure of India’s high hand tactics” against Pakistan.
“The country’s economic situation has improved and the country is moving towards development. India is planning a conspiracy to divert the attention of the development of our country through unilateral aggression.
“International institutions have responsibly rejected the false propaganda of India. Indian attempts to sabotage the IMF program have failed,” said the prime minister.
The prime minister said the program would help stabilize the economy and put it on the way to long -term recovery, adding that the government was working in priority areas such as tax reform, the best performance of the energy sector and the development of the private sector.
“Improved economic indicators in the last 14 months are a reflection of government positive policies.
“Pakistan’s economic stability strategy, effective performance and sustainable planning are committed to this,” said the statement.
The approval of the IMF Executive Board has led to an immediate disbursement of $ 1 billion, which raises total disbursements under the loan program to approximately $ 2 billion. By successfully completing seven semiannual revisions, Pakistan is entitled to seven equal installments of approximately $ 1 billion (SDR 760 million) under the loan program.
Pakistan and the IMF had reached an aid package of three years and $ 7 billion in July, with the new program ready to allow the country to “cimenda macroeconomic stability and create conditions for stronger, more inclusive and resistant growth.”
The two parties had reached an agreement at the personnel level on March 25 on the first biannual review of the loan program of $ 7 billion of $ 7 billion, agreeing a series of reforms, including the introduction of a carbon tax, timely reviews to electricity rates, the increase in water prices and the liberalization of the automotive sector.
The personnel agreement also implied a new 28 -month RSF agreement, which provides total access to around $ 1.3 billion (special drawing rights or SDR).
This carries the combined size of the IMF support to approximately $ 8.3 billion. The additional financing of RSF, unlike the schedule for review and biannual disbursement of the rescue package, is subject to disbursements when completing specific projects and policy actions to develop climate resistance.
The approval of the Board would soon be followed by another IMF mission that Visitan Pakistan to finish the 2025-26 budget that will be presented at the National Assembly in the first week of June.
The implementation of important reforms, including carbon tax, water prices and car protectionism, would gradually begin from July 1.
The current fiscal consolidation will continue in the next budget through a reduction in energy subsidies and strict development expense.
