New 28-month deal would support Pakistan’s efforts to mitigate and adapt to climate change
Director of the Communications Department of International Monetary Fund (IMF), Julie Kozack, has said Pakistan would be able to have access of a total of 2.3 billion dollar under Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) following Staff Level Agreements (SLA).
In her media briefing at IMF Headquarters in Washington, she said the IMF Executive Board on September 25, last year, approved a $7 billion EFF arrangement for Pakistan spanning over 37 months.She added that SLA on the first review was reached on March 25, while there was also another staff-level agreement reached on the same day on RSF.
She said under the EFF arrangement, which is the first review under the program, Pakistan will have access to $1 billion after the formal approval by the IMF’s Executive Board.
Similarly, Pakistan would be disbursed an amount of $1.3 billion under the Resilience and Sustainability Facility, following the approval by the IMF’s Executive Board.
The IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout programme earlier this week.
The new 28-month deal would support Pakistan’s efforts to mitigate and adapt to climate change.
Meanwhile, the federal government is set to unveil the 2025-26 budget after extensive consultations with the IMF, according to sources within the Ministry of Finance.
An IMF delegation is expected to visit Pakistan in the coming weeks for further discussions, with both virtual and in-person negotiations continuing until the budget’s finalisation, the sources said.
The budget, slated for presentation in early June, will incorporate economic policies and fiscal measures in line with IMF recommendations.
Officials disclosed that the IMF has agreed to offer limited relief in the real estate sector. Under the new budget, the federal excise duty on the first property sale will be eliminated, though withholding and income tax rates will remain unchanged.
