ISLAMABAD (AFP) – Pakistan and the International Monetary Fund (IMF) have reached a staff level agreement on policies and reforms to complete the sixth review under six billion dollars Extended Fund Facility.
“The Pakistani authorities and IMF staff have reached a staff-level agreement on policies and reforms needed to complete the sixth review under the EFF [Extended Fund Facility],” said the IMF in a statement.
Completion of the review would make available about 1,059 million dollars to Pakistan bringing total disbursements under the Extended Fund Facility to 3,027 million dollars, its added.
However, the agreement is subject to approval by the Executive Board of the IMF.
During seven week-long discussion between the two parties, the IMF mission led by Ernesto Ramirez Rigo.
The IMF recognised that despite a difficult environment, Pakistan continues to make progress on implementing the Extended Fund Facility programme.
“All quantitative performance criteria for end-June were met with wide margins.”
The IMF also acknowledged Pakistan’s efforts in improving anti-money laundering and combating the financing of terrorism framework.
According to IMF, available data suggests that a strong economic recovery has gained hold, benefiting from the authorities’ multifaceted policy response to the COVID-19 pandemic that has helped contain its human and macroeconomic ramifications.
IMF expects that such measures will help safeguard the positive near-term outlook, with growth projected to reach, or exceed, 4% in FY 2022 and 4.5%the fiscal year after that.