The IMF approved a $7 billion Extended Fund Facility for Pakistan, enabling $1 billion access upon approval and $1.3 billion from the Resilience and Sustainability Facility. Additionally, Lebanon requested support for a comprehensive economic reform program to address its economic challenges, with ongoing discussions between the IMF and Lebanese authorities.
On September 25, 2024, the International Monetary Fund (IMF) Executive Board sanctioned a 37-month Extended Fund Facility (EFF) arrangement for Pakistan, amounting to $7 billion. An initial disbursement of approximately $1 billion will be accessible immediately upon approval, with an added $1.3 billion available through the Resilience and Sustainability Facility (RSF) throughout the arrangement’s duration. An agreement regarding the First Review was finalized on March 25, 2025.
IMF spokesperson Julie Kozack elaborated on the EFF arrangement, stating that the Executive Board’s approval would enable Pakistan to access significant funding. The First Review allows for immediate disbursements, while the RSF will also provide financial support in tranches during its implementation. Kozack emphasized the importance of these financial arrangements to aid Pakistan’s recovery and reform efforts.
Regarding Lebanon, the IMF has received a request for a new economic program following an IMF fact-finding mission that occurred from March 10 to 13. This mission recognized Lebanon’s pressing economic challenges and highlighted the need for a robust IMF-supported program to facilitate recovery. Ongoing discussions are being held between the IMF and Lebanese authorities to create a comprehensive economic reform strategy.
Kozack stressed the need for a multifaceted reform strategy in Lebanon focusing on fiscal sustainability, financial sector restructuring, governance improvements, and enhancing state-owned enterprises. Additionally, improving data provision is deemed crucial for fostering transparency and facilitating informed policy decisions. The IMF remains committed to supporting Lebanon through constructive and ongoing dialogues with its authorities.
In summary, the IMF Executive Board’s approval of the Extended Fund Facility for Pakistan aims to bolster the nation’s economic recovery with significant financial support. Concurrently, the IMF is actively engaging with Lebanese authorities to develop a comprehensive strategy to address economic challenges. Both nations are at pivotal junctures, relying on these international financial arrangements to promote growth and stability.
Original Source: mediacenter.imf.org
