ISLAMABAD: Pakistan and the IMF executive board reached a staff-level agreement on Wednesday that revived the $6 billion Extended Fund Facility (EFF) programme for the nation, according to Bloomberg.
The action was taken after the coalition government complied with all “tough” requirements imposed by the international lender, including, among other things, an increase in the price of petroleum products and energy tariffs.
A $1.2 billion disbursement, which is anticipated for August, will be made possible by the staff-level agreement.
According to Bloomberg, the disbursal would provide relief to Islamabad because the nation’s foreign exchange reserves are currently only sufficient to cover less than two months’ worth of imports.
The Fund staff and Pakistan made significant progress toward agreement on the budget for 2022–2023 in June, and the IMF then shared a draught Memorandum of Economic and Financial Policies with Pakistan (MEFP).
