Washington: The International Monetary Fund (IMF) has sanctioned a $7 billion aid package for Pakistan, aimed at bolstering the country’s economic stability. The funds were approved under the Extended Fund Facility (EFF) program during a meeting of the IMF Executive Board held in Washington.

According to Ministry of Information and Broadcasting, the decision comes as a significant development for Pakistan, which has been seeking financial assistance to support its economic reforms and stabilize its financial infrastructure. The EFF program is designed to assist countries facing serious payment imbalances because of structural impediments or slow growth.

The approval of this funding is expected to help Pakistan implement economic and financial reforms aimed at achieving a more stable and resilient economy. The specifics of the reforms expected to be implemented under the EFF have not been detailed in the release.

This financial support from the IMF is crucial for Pakistan as it aims to overcome the economic challenges posed by internal and external factors. The country has been grappling with issues such as high inflation rates, diminishing foreign exchange reserves, and increasing fiscal deficits.

The IMF and Pakistani authorities are expected to continue their collaboration to ensure the effective use of the funds in accordance with the program’s objectives.