Pakistan, IMF agree on $1.1bn release.
IMF and Pakistan reached an agreement for $1.1 billion release under the Stand By Agreement. The deal awaits approval from the IMF Executive Board.
This agreement secures the final installment of the bailout funds Pakistan received last year, preventing debt default. IMF’s recent mission in Pakistan reviewed fiscal benchmarks during a five-day visit.
IMF noted Pakistan’s economic and financial improvements since the first review, with growth and confidence recovering. However, inflation remains high, requiring ongoing policy efforts.
Pakistan commits to continuing current IMF program policies for stability. Plans include achieving fiscal targets, broadening the tax base, and addressing circular debt.
Pakistan aims for a medium-term fund facility to address fiscal and external sustainability, promote economic recovery, and ensure inclusive growth. Authorities seek to strengthen economic stability and lay foundations for long-term growth.
