Pakistan gets $ 3 billion from IMF.

IMF reaches staff-level agreement with Pakistan on a US$3 billion Stand-By Arrangement amid political and economic turmoil

The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan on policies to be supported by a Stand-By Arrangement (SBA) worth US$3 billion. The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.

This IMF investment is a ray of hope for Pakistan’s beleaguered economy, which has been suffering from several external shocks such as the catastrophic floods in 2022 that impacted the lives of millions of Pakistanis and an international commodity price spike in the wake of Russia’s war in Ukraine.

The new SBA will support the authorities’ immediate efforts to stabilize the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners. The new SBA will also create space for social and development spending through improved domestic revenue mobilization and careful spending execution to help address the needs of the Pakistani people.

Steadfast policy implementation is key for Pakistan to overcome its current challenges, including through greater fiscal discipline, a market-determined exchange rate to absorb external pressures, and further progress on reforms, particularly in the energy sector, to promote climate resilience, and to help improve the business climate.
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