Governor State Bank of Pakistan (SBP), Jameel Ahmad, said on Wednesday that the International Monetary Fund (IMF) Executive Board is expected to approve a $7 billion Extended Fund Facility (EFF) for Pakistan. This approval will pave the way for the release of an initial $1.1 billion tranche, providing a significant boost to the country’s financial stability.

In a conversation with reporters, Governor SB{ projected that Pakistan’s current account deficit would likely remain around 1 percent of GDP. He also forecasted that inflation would hover around 11.5 percent, while GDP growth is anticipated to be between 2.5 percent and 3.5 percent.

The anticipated approval follows a staff-level agreement reached in July between IMF staff and Pakistani authorities on the 37-month EFF arrangement. This agreement is part of ongoing efforts to stabilize Pakistan’s economy and support its reform agenda.