The IMF approved a $7 billion Extended Fund Facility for Pakistan, enabling $1 billion access immediately and $1.3 billion via the Resilience and Sustainability Facility. In parallel, the IMF is collaborating with Lebanon to create a comprehensive economic reform program to address significant challenges and boost growth.
On September 25, 2024, the IMF Executive Board sanctioned a 37-month Extended Fund Facility (EFF) for Pakistan, amounting to $7 billion. This arrangement allows Pakistan to access approximately $1 billion immediately upon approval, with an additional $1.3 billion available via the Resilience and Sustainability Facility (RSF) throughout the duration of the program. A staff-level agreement for the First Review was finalized on March 25, 2025.
The IMF spokesperson, Julie Kozack, noted the significance of this arrangement, emphasizing that the approval enables Pakistan to access $1 billion for disbursement through the EFF, contingent on board approval. Furthermore, the RSF will release $1.3 billion over its term, also subject to IMF Executive Board consent. This arrangement aims to stabilize the country’s economic conditions.
Kozack also highlighted the IMF’s engagement with Lebanon, where a fact-finding mission occurred from March 10-13, acknowledging the urgent need for a new economic reform program. The mission welcomed Lebanon’s request for support, indicating a commitment to aiding the country’s reform efforts. The focus will be on developing a comprehensive strategy for economic rehabilitation, critical for restoring growth, increasing employment, and improving social conditions.
The Lebanese reform program must address fiscal and debt sustainability, restructuring of the financial sector, enhancement of governance, and reforms in state-owned enterprises. Additionally, improving data transparency and policymaking is essential. Ongoing discussions with Lebanese authorities will continue as the IMF remains committed to supporting the nation’s economic recovery.
In summary, the IMF has established significant financial support mechanisms for both Pakistan and Lebanon, with a focus on economic stabilization and reform. Pakistan will benefit from a $7 billion arrangement, with immediate and phased disbursements structured under the EFF and RSF. Lebanon, facing substantial economic hurdles, is in the process of developing a comprehensive reform strategy that emphasizes fiscal responsibility and transparency, with the IMF’s collaborative support.
Original Source: mediacenter.imf.org
