Pakistan is set to access a total of $2.3 billion under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) following recent Staff Level Agreements (SLA), according to IMF Communications Department Director Julie Kozack.
During a media briefing at the IMF Headquarters in Washington, Kozack explained that the IMF Executive Board had approved a $7 billion EFF arrangement for Pakistan in September 2023, covering a period of 37 months. She also noted that an SLA was reached on March 25, both for the first review of the EFF and for the RSF.
Under the EFF arrangement, Pakistan will receive $1 billion upon formal approval by the IMF’s Executive Board. Additionally, Pakistan will be disbursed $1.3 billion through the RSF, pending approval by the IMF’s Executive Board.
This comes after the IMF staff finalized a new $1.3 billion agreement and completed the first review of the ongoing 37-month bailout program. The new 28-month deal under the RSF will support Pakistan’s efforts to combat and adapt to climate change.
In parallel, the federal government is preparing to present the 2025-26 budget, following extensive consultations with the IMF, according to sources within the Ministry of Finance. An IMF delegation is expected to visit Pakistan soon for further discussions, with both virtual and in-person negotiations continuing until the budget’s finalization.
The budget, expected to be presented in early June, will reflect economic policies and fiscal measures aligned with IMF recommendations. Officials have revealed that the IMF has agreed to provide some relief in the real estate sector. Specifically, the federal excise duty on the first property sale will be eliminated, although withholding and income tax rates will remain unchanged.
The IMF Executive Board is expected to approve these recommendations by late May or June, coinciding with the completion of the budget. Failure to meet IMF conditions could jeopardize Pakistan’s access to climate-related financial support.
