International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan over the provision of US$ 500 million.
As per details, a staff-level agreement has been reached between Pakistan and IMF over the provision of US$ 500 million aimed at stabilizing the economy, ensuring debt sustainability and other essential structural and policy reforms to strengthen country’s economic system.
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Abdul Hafeez Shaikh – Federal Minister for Finance and Revenue Affairs took to social media to announce the development.
I would like to share that the Government of Pakistan has reached a staff level agreement with the IMF. Overcoming the challenges created by the Pandemic has required concerted effort, he tweeted.
An International Monetary Fund (IMF) team led by Ernesto Ramirez Rigo, concluded virtual discussions with the Pakistani authorities and reached a staff-level agreement on the second to fifth reviews of the authorities’ reform program supported by the IMF 39-month Extended Fund Facility (EFF) arrangement for the amount of SDR 4,268 million (about US$6 billion (press release 19/264), read the statement issued by IMF.
In a statement, Ernesto Ramirez Rigo noted that the policies and reforms implemented by the Pakistani authorities prior to the COVID-19 shock had started to reduce economic imbalances and set the conditions for improving economic performance.
The State Bank of Pakistan (SBP)’s monetary and exchange rate policies have served Pakistan well and were critical in helping to navigate the COVID-19 shock, he added.
It is imperative to know that the US$ 500 million grant is subjected to approval from IMF’s Executive Board.
