The IMF has approved a 37-month Extended Fund Facility (EFF) for Pakistan totaling $7 billion, enabling access to $1 billion initially and $1.3 billion over the arrangement’s duration. Additionally, the IMF is collaborating with Lebanon to design a comprehensive economic reform program to address its financial challenges.
On September 25, 2024, the International Monetary Fund (IMF) Executive Board sanctioned a 37-month Extended Fund Facility (EFF) for Pakistan, amounting to $7 billion. Following this arrangement, a staff-level agreement concerning the First Review was achieved on March 25, 2025. This EFF will facilitate Pakistan’s access to approximately $1 billion at the time of approval, alongside an additional $1.3 billion available through the Resilience and Sustainability Facility (RSF) during the agreement period.
IMF spokesperson Julie Kozack elaborated on the arrangement, stating, “On September 25th of 2024, the Executive Board approved a 37-month EFF arrangement for Pakistan, and it was for $7 billion.” She emphasized that upon Executive Board approval, Pakistan is positioned to obtain $1 billion in disbursement, with the RSF providing $1.3 billion over the life of the arrangement, also subject to the Board’s approval.
In a related context, Kozack provided insights on Lebanon’s economic situation. She noted that the IMF has received a request for a new program from Lebanon. The organization is actively engaging with Lebanese authorities to devise a comprehensive economic reform strategy. She stated that an IMF fact-finding mission visited Lebanon from March 10 to 13, marking progress in discussions regarding the new IMF-supported program aimed at addressing Lebanon’s pressing economic challenges.
Kozack highlighted the necessity of a thorough strategy for economic rehabilitation in Lebanon, emphasizing the importance of restoring growth, reducing unemployment, and improving social conditions. This reform program must prioritize fiscal and debt sustainability, financial sector restructuring, governance enhancement, and state-owned enterprise reforms. Moreover, improving data provision for increased transparency and informed policymaking is paramount. She assured the public of the IMF’s commitment to assisting Lebanese authorities and maintaining constructive engagement in ongoing discussions.
In summary, the IMF has approved a significant financial arrangement for Pakistan, aiming to bolster its economic stability through the EFF and RSF. Concurrently, the IMF is also engaging with Lebanon to develop a substantive economic reform initiative to tackle acute economic challenges. Both nations are now positioned to pursue necessary reforms to promote sustainable growth and improve socio-economic conditions.
Original Source: mediacenter.imf.org
