The Executive Board of the International Monetary Fund (IMF), in its meeting held in Washington, has approved a new tranche of approximately $1.3 billion for Pakistan. With this approval, the total undisbursed amount under the program has now increased to $3.3 billion.
Under the $7 billion Extended Fund Facility (EFF) program, Pakistan will receive more than $1 billion. The newly approved funds also include the first tranche of over $200 million under the Resilience and Sustainability Facility (RSF). Pakistan has already received two earlier installments under the EFF program.
While approving Pakistan’s second economic review, the IMF Board termed the implementation of the loan program as strong and satisfactory, and also endorsed the government’s continued commitment to economic reforms.
It is worth mentioning that Pakistan and the IMF reached a staff-level agreement on October 14. Pakistan fulfilled all conditions to secure the new tranche of the $102 billion debt program, including the release of the Corruption and Governance Diagnostic Report one of the IMF’s primary requirements.
The government published the report before the Board meeting, completing all obligations under the agreement.
Experts are calling this approval an important step toward Pakistan’s economic stability.
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