The Executive Board of the International Monetary Fund (IMF) has approved a $7 billion loan program for Pakistan, on Wednesday.This follows a staff-level agreement reached between the IMF and Pakistani authorities on July 12 for a 37-month Extended Fund Facility (EFF) worth approximately $7 billion.
The IMF stated that the new program aims to support Pakistan in stabilizing its macroeconomic framework while creating the conditions for stronger, more inclusive, and resilient economic growth.
The initiative is designed to bolster fiscal and monetary policies while implementing reforms across various sectors.These reforms include broadening the tax base, improving the management of State-Owned Enterprises (SOEs), enhancing competition, securing a level playing field for investments, and strengthening human capital.
Additionally, the program emphasizes scaling up social protections, particularly through the expansion of the Benazir Income Support Program (BISP), increasing both its coverage and generosity.
