The International Monetary Fund has reached a staff-level agreement with Pakistan on reviews of some of its lending programs, potentially unlocking about $1.21 billion in financing pending board approval, the fund said on Wednesday. * If the board approves the deal, Pakistan could access about $1 billion under the Extended Fund Facility and $210 million under the climate-focused Resilience and Sustainability Facility, bringing total disbursements under the two programs to around $5.7 billion. * Pakistan remains reliant on external financing to bolster foreign exchange reserves and meet debt repayments. * "Supported by the EFF, the authorities have successfully navigated the impact of the Middle East conflict, and strong policies have helped preserve macroeconomic stability," the fund said. * Risks remain elevated, however, due to geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions, the IMF said. Live Events * Pakistan is the most vulnerable major Asia-Pacific economy to a prolonged Middle East conflict, given its dependence on Gulf energy imports, remittances and financing support from the region, Ahmad Mobeen, principal economist at S&P Global Market Intelligence, said earlier this year. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel)
Pakistan-IMF staff deal to unlock $1.2 billion
The International Monetary Fund has reached a staff-level agreement with Pakistan on reviews of some of its lending programs, potentially unlocking about $1.21 billion in financing pending board approval, the fund said on Wednesday. * If the board approves the deal, Pakistan could access about $1 billion under the Extended Fund Facility and $210 million under the climate-focused Resilience and Sustainability Facility, bringing total disbursements under the two programs to around $5.7 billion. * Pakistan remains reliant on external financing to bolster foreign exchange reserves and meet debt repayments. * "Supported by the EFF, the authorities have successfully navigated the impact of the Middle East conflict, and strong policies have helped preserve macroeconomic stability," the fund said. * Risks remain elevated, however, due to geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions, the IMF said. Live Events * Pakistan is the most vulnerable major Asia-Pacific economy to a prolonged Middle East conflict, given its dependence on Gulf energy imports, remittances and financing support from the region, Ahmad Mobeen, principal economist at S&P Global Market Intelligence, said earlier this year. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel)
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