The IMF has approved a $7 billion EFF arrangement for Pakistan, with a First Review agreement reached that allows for significant fund disbursements. Concurrently, the IMF is working with Lebanon to develop a new economic reform program to tackle its economic challenges, emphasizing transparency and fiscal sustainability.
On September 25, 2024, the International Monetary Fund (IMF) Executive Board approved a 37-month Extended Fund Facility (EFF) for Pakistan, amounting to $7 billion. Following this, a staff-level agreement on the First Review was established on March 25, 2025. This EFF arrangement will permit Pakistan to gain access to approximately $1 billion upon approval, and an additional $1.3 billion will be available through the Resilience and Sustainability Facility (RSF) throughout the arrangement’s duration.
An IMF spokesperson, Ms. Julie Kozack, elaborated on the EFF arrangement, indicating that upon approval, Pakistan would be able to access about $1 billion for disbursement. Additionally, she noted that the RSF component could provide $1.3 billion, subject to the IMF Executive Board’s approval, with funds delivered in tranches over the length of the RSF.
Furthermore, the IMF received a request for a new program from Lebanon and is collaborating with the country’s authorities to develop a comprehensive economic reform strategy. An IMF fact-finding mission was conducted in Lebanon from March 10 to 13, welcoming this request and recognizing the substantial economic challenges facing the nation.
The IMF emphasizes the necessity of a robust rehabilitation strategy to restore growth and improve social conditions in Lebanon. Essential reforms must focus on fiscal and debt sustainability, financial sector restructuring, governance enhancements, and state-owned enterprises. The provision of reliable data to enhance transparency and inform policymaking is crucial as well. Ongoing engagements with Lebanese authorities are constructive, aimed at fulfilling these objectives.
In summary, the IMF has approved a significant EFF arrangement for Pakistan to support its economic recovery and sustainability, while also actively engaging with Lebanese authorities to address Lebanon’s economic challenges through a comprehensive reform program. Both nations must focus on strategies that foster growth, improve governance, and enhance data transparency for effective policymaking.
Original Source: mediacenter.imf.org
