The International Monetary Fund (IMF) Executive Board is set to review Pakistan’s request for a 37-month Extended Fund Facility (EFF) arrangement, valued at approximately $7 billion, during its meeting today. This development follows a staff-level agreement reached between Pakistani authorities and the IMF team on July 12.
According to the IMF Executive Board’s calendar, the agenda includes the “Pakistan – 2024 Article IV Consultation and Request for an Extended Arrangement under the Extended Fund Facility.” The proposed EFF, equivalent to SDR 5,320 million, is designed to support Pakistan’s economic reform program.
The agreement is contingent upon the IMF Executive Board’s approval and the timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners. Officials have indicated that Pakistan has fulfilled all prior conditions, raising expectations for the Board’s approval of the EFF.
In a recent in-camera briefing to the National Assembly Standing Committee on Finance, the Finance Division disclosed that the IMF has been assured of loan rollovers from friendly countries. These assurances have played a crucial role in convincing the IMF to schedule today’s meeting to further discuss Pakistan’s program. Additionally, the IMF has been briefed on reforms in Pakistan’s power sector, which are part of the broader economic reform agenda.
Despite the anticipated approval of the $7 billion EFF, Pakistan’s financial needs exceed the current IMF bailout package. The country will need to secure an additional $5 billion from commercial banks and other lenders to meet its financial requirements.
