WASHINGTON – The International Monetary Fund (IMF) has approved a $7 billion Extended Fund Facility (EFF) for Pakistan. The decision was made during an Executive Board meeting chaired by IMF Managing Director Kristalina Georgieva in Washington.
Pakistan is set to receive the first installment of $1.1 billion by the end of September, with a second installment expected later in the fiscal year. The loan will carry an interest rate of less than 5%.
Prime Minister Shehbaz Sharif expressed gratitude to Saudi Arabia, China, and the UAE for their support, which helped meet the IMF’s tough conditions. Speaking in New York, he emphasized that their backing was crucial in securing this deal.
Earlier this year, Pakistan signed a three-year agreement with the IMF to stabilize its economy and promote inclusive growth. The country also completed a prior $3 billion loan program in April, leading to positive credit rating upgrades by Moody’s and Fitch.
The government highlighted recent structural reforms and the reduction in policy rates, ensuring that future borrowing will be done on favorable terms.