ISLAMABAD: A staff-level agreement for a $2 billion loan between Pakistan and the International Monetary Fund (IMF) was reached late on Tuesday.
Negotiations between Pakistan and the IMF have been successful, after which a staff-level agreement has been reached between Pakistan and the IMF for the first review.
According to the International Monetary Fund, the IMF team was led by Nathan Porter. The final approval of the deal will be given by the IMF board. If approved, Pakistan will be provided $1 billion under the Extended Fund Facility.
Pakistan will receive $1.3 bn under a 28-month arrangement to deal with climate change and disasters. The total loan amount under the program will be $2 billion.
The IMF says inflation in Pakistan is at its lowest level since 2015; 18 months after Pakistan made progress in restoring macroeconomic stability despite challenges.
The IMF said that the economic situation in Pakistan had improved. Economic activity is expected to increase. However, Pakistan continues to face environmental risks.
The IMF added that it is committed to implementing reforms and promoting Pakistan’s social security, supporting Pakistan against natural disasters, and continuing to support increased budgets and investments to combat climate change.
The IMF said it would also support Pakistan’s efforts to reform the energy sector.
Finance Minister Mohammad Aurangzeb has said that he is determined to put the country on the path of productive and export-oriented development. The Minister said that Pakistan is committed to implement reforms related to taxation, energy and public institutions.
