ISLAMABAD: Pakistan and the International Monetary Fund have reached a staff-level agreement for a $1.2 billion tranche, marking a significant development in the country’s economic landscape. This agreement follows negotiations on the fourth review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the third review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF).

According to Radio Pakistan, an IMF team led by Iva Petrova issued a statement at the conclusion of these negotiations, highlighting the agreement with Pakistani authorities. While the staff-level agreement is pending approval by the IMF Executive Board, its endorsement would grant Pakistan access to approximately $1 billion under the EFF and about $210 million under the RSF. This would bring the total disbursements under the two arrangements to around $5.7 billion.

Petrova stated that the support from the Extended Fund Facility has enabled Pakistani authorities to effectively manage the impact of the Middle East conflict. The implementation of strong policies has reportedly aided in maintaining macroeconomic stability, with improvements in sovereign ratings and renewed international market access reflecting stronger policy credibility. The IMF statement also underscored Pakistan’s commitment to maintaining sound macroeconomic policies.