ISLAMABAD
The approval of Pakistan's $7 billion Extended Fund Facility (EFF) is a topic of discussion at the September 25 Executive Board meeting, which has been reaffirmed by the International Monetary Fund (IMF). Pakistan's economy, which has been struggling with rising inflation and depleting reserves, needs the loan to stabilize.At a press conference on Thursday, IMF spokesperson Julie Kozack made the announcement about the meeting, saying, "We are very happy that we can say now that the board meeting is scheduled for September 25."
Pakistan made this declaration following the acquisition of development partners' assurances regarding the required funding.
A staff-level agreement was achieved in July after discussions for the $7 billion financing package began in May. Pakistan nevertheless had trouble getting the IMF Board's approval in the end. The government was forced to abide with strict IMF requirements, which included raising electricity prices by up to 51% and imposing a record Rs1.8 trillion in new levies.
Pakistan consented to stop creating any new export processing zones or special economic zones, among other requirements. The nation also agreed that existing zones' tax breaks would not be renewed after they expired. These actions are a part of a larger package of modifications to industrial policy that critics claim essentially give the IMF authority over important economic choices.
Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, verified that the nation secured more than $2 billion in external funding from lenders outside the IMF. Ahmad stated during an analyst conference on Thursday, "I don't see any further hurdle now in taking our case to the board. All those assurances and external financing have already been arranged by the government."
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