ISLAMABAD: An International Monetary Fund (IMF) mission is set to arrive in Islamabad in early to mid-March for discussions on the first review under Pakistan’s Extended Fund Facility (EFF) program, the IMF stated.
The visit will focus on Pakistan’s economic progress and the authorities’ request for assistance under the Resilience and Sustainability Facility (RSF) arrangement. A technical team will arrive in late February to discuss issues related to the RSF.
Pakistan, currently under a $7 billion IMF bailout program, is striving to stabilize its economy after narrowly avoiding a sovereign default. The country’s foreign reserves remain low, covering less than a month’s worth of imports.
A successful review could unlock approximately $1 billion in IMF funding, which is crucial for economic stability. The Pakistani government and central bank remain optimistic about meeting the necessary targets.
Additionally, an IMF mission will visit from February 24 to 28 to assess $1 billion in climate financing for Pakistan. The funds will be provided under the Resilience and Sustainability Trust, established in 2022 to support long-term concessional financing for climate adaptation and transitioning to cleaner energy.
Pakistan formally requested the funding in October last year to address its vulnerability to climate change. The financial support aims to enhance climate resilience and sustainable development efforts.
With the IMF’s continued engagement, Pakistan hopes to strengthen its economic position and secure necessary funding to navigate ongoing economic challenges.
