The IMF has approved a $7 billion EFF arrangement for Pakistan, enabling immediate access to $1 billion, with an additional $1.3 billion through the RSF. Concurrently, the IMF is collaborating with Lebanese authorities on a new economic reform program to address significant challenges in Lebanon’s economy.
On September 25, 2024, the Executive Board of the International Monetary Fund (IMF) approved a 37-month Extended Fund Facility (EFF) arrangement for Pakistan, totaling $7 billion. Following this, a staff-level agreement on the First Review was established on March 25, 2025. This arrangement allows Pakistan to access approximately $1 billion immediately, with an additional $1.3 billion accessible through the Resilience and Sustainability Facility (RSF) during the arrangement’s duration.
IMF spokesperson Julie Kozack elaborated on the arrangement, indicating that once approved, the EFF’s First Review will facilitate an access of $1 billion for Pakistan. Further, the RSF is structured to provide funding of $1.3 billion over its lifespan, depending upon IMF Executive Board approval and will be disbursed in tranches.
Regarding Lebanon, Kozack announced that the IMF has received a request for a new economic program and is currently collaborating with Lebanese authorities to form a comprehensive economic reform agenda. An IMF fact-finding mission that visited Lebanon from March 10 to 13 expressed support for this initiative to confront Lebanon’s critical economic challenges.
Kozack emphasized the necessity of a thorough strategy for economic rehabilitation in Lebanon. This plan aims to restore growth, alleviate unemployment, and improve social conditions, focusing on fiscal sustainability, financial sector restructuring, governance reforms, and enhancing transparency through improved data provision. Current discussions with Lebanese authorities continue to be proactive and constructive, ensuring that the IMF remains committed to aiding Lebanon’s reform efforts.
In summary, the IMF has approved a substantial support arrangement for Pakistan while also actively engaging with Lebanon to develop a robust economic reform strategy. The arrangements for Pakistan include significant funding through both the EFF and the RSF, enabling the nation to address critical economic needs. Concurrently, Lebanon’s need for comprehensive reforms highlights the IMF’s commitment to fostering economic stability and sustainable growth.
Original Source: mediacenter.imf.org
