The IMF has approved a 37-month Extended Fund Facility for Pakistan worth $7 billion, facilitating immediate access to $1 billion and subsequent funds through the Resilience and Sustainability Facility. Additionally, the IMF is engaged with Lebanese authorities to develop a comprehensive economic reform program to address Lebanon’s economic challenges.
On September 25, 2024, the International Monetary Fund (IMF) Executive Board approved a 37-month Extended Fund Facility (EFF) arrangement for Pakistan, totaling $7 billion. Upon approval, Pakistan will have access to approximately $1 billion, while an additional $1.3 billion will be accessible via the Resilience and Sustainability Facility (RSF) throughout the arrangement’s duration. The staff-level agreement for the First Review was reached on March 25, 2025, ensuring further funds are obtainable as needed.
IMF spokesperson Julie Kozack discussed the significance of the EFF arrangement, highlighting that the $1 billion disbursement will significantly aid Pakistan upon approval by the Executive Board. The RSF, also subject to Executive Board approval, will provide $1.3 billion in tranches over the life of the arrangement. These funds are intended to bolster Pakistan’s economic stability and growth.
Additionally, Kozack indicated that the IMF is addressing Lebanon’s economic situation. A fact-finding mission took place from March 10 to 13 and welcomed a request from Lebanese authorities for a new IMF-supported program aiming to combat substantial economic issues. The IMF is collaborating with these authorities to formulate a comprehensive economic reform strategy.
The necessary measures for Lebanon’s recovery include a robust strategy focused on economic rehabilitation to foster growth, lower unemployment, and elevate social conditions. Key areas for reform will encompass fiscal and debt sustainability, restructuring the financial sector, enhancing governance, and improving oversight of state-owned enterprises. Enhanced data provision will also be crucial to boost transparency and support informed policymaking moving forward.
In summary, the IMF has approved a significant financial arrangement for Pakistan to bolster its economy, alongside initiating efforts to support Lebanon in tackling its severe economic challenges. The financial aid, structured through the EFF and RSF, is aimed at promoting sustained growth and stability in Pakistan. Concurrently, Lebanon’s progress towards a comprehensive reform plan is essential for its economic rehabilitation. The IMF remains committed to these collaborative efforts in both nations.
Original Source: mediacenter.imf.org
