Pakistan and IMF reach key agreement under the the EFF

Pakistan and IMF reach key agreement under the the EFF

ISLAMABAD - Pakistan and International Monetary Fund reach key agreement under the the EFF.The Pakistani authorities and IMF staff have reached a staff-level agreement on policies and reforms needed to complete the first review under the EFF.

The agreement is subject to approval by IMF management and the Executive Board of Directors. Completion of the review will enable disbursement of SDR 328 million (or around US$ 450 million) and will help unlock significant funding from bilateral and multilateral partners.

The IMF’s press release reads, “Despite a difficult environment, program implementation has been good, and all performance criteria for end-September were met with comfortable margins.

“Work continues towards completing the remaining structural benchmarks for end-September. Significant progress has been made in improving the AML/CFT framework, although additional work is needed before March 2020.

International partners remain committed to supporting the authorities’ reform efforts, providing the necessary financing assurances.

“On the macroeconomic front, signs that economic stability is gradually taking hold are steadily emerging.

The external position is strengthening, underpinned by an orderly transition to a flexible, market-determined exchange rate by the State Bank of Pakistan (SBP) and a higher-than-expected increase in SBP’s net international reserves.