(Web Desk) — The International Monetary Fund (IMF) has announced a staff-level agreement with Pakistan for an extended fund facility (EFF) of approximately $7 billion.

The announcement was made early Saturday morning, according to Pakistan time, and praised the country’s adherence to the terms of the Stand-by Arrangement (SBA) signed in 2023 by the Shehbaz Sharif-led PDM government.

Under this agreement, Pakistan is set to receive the funds over the next three years, contingent upon the government’s fulfillment of certain promises. These include implementing comprehensive taxation and privatizing state-owned enterprises. Additionally, Pakistan must secure further loans from allies such as China, Saudi Arabia, and the UAE.

“Building on the economic stability achieved under the 2023 Stand-by Arrangement (SBA), IMF staff and the Pakistani authorities have reached a staff-level agreement on a 37-month Extended Fund Facility Arrangement (EFF) of about US$7 billion. This agreement is subject to approval by the IMF’s Executive Board,” the IMF statement read.

The new program aims to enhance macroeconomic stability and foster conditions for stronger, more inclusive, and resilient growth. The program outlines steps to strengthen fiscal and monetary policy, broaden the tax base, improve the management of state-owned enterprises (SOEs), enhance competition, secure a level playing field for investment, improve human capital, and scale up social protection through the Benazir Income Support Program (BISP).

The IMF emphasized that ongoing strong financial support from Pakistan’s development and bilateral partners will be crucial for the success of the program.

4o