Islamabad (TDI): A review mission of the International Monetary Fund (IMF) has arrived in Pakistan to conduct its semi-annual review of the $8.4 billion approved loans, under two different programs.
Currently, IMF has two active programs in Pakistan. One, worth $7 billion was approved in September last year, under the External Fund Facility (EFF). The other was approved in May this year under the Resilience and Sustainability Facility (RSF) – worth $1.4 billion.
More than $2 billion have been released so far and another $1 billion is expected to be given to Pakistan after this review. This is the second review of the EFF while the first for the climate resilience fund.
It is generally being hoped that this review will take into account the economic losses the country has suffered due to floods since June 26. In line with this, the mission may revise some growth and tax targets, to accommodate the unanticipated flooding caused by heavy downpours.
A day before the arrival of the review mission, Pakistan’s Prime Minister Shehbaz Sharif met the IMF’s Managing Director Kristalina Georgieva in New York, on the sidelines of the United Nations General Assembly.
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“Pakistan is making steady progress on its IMF commitments, but the impact of floods must also be factored into the review,” the PM was quoted saying in a statement released by the government.
The mission will evaluate progress during the first half of 2025, including targets set for the March–June quarter.
Pakistan is expected to meet all seven quantitative performance criteria (QPCs) for this review of the program.
As preconditions to the EFF, the government had to waive off certain food and fuel subsidies. But the approval of the program brought the country out of an almost economic crisis situation.
Now, Pakistan has gained a certain level of economic stability but the agricultural and infrastructural losses inflicted by floods are still a major setback.
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