WASHINGTON The International Monetary Fund (IMF) on Wednesday approved a $7 billion Extended Fund Facility (EFF) for Pakistan.
It was decided during the Executive Board meeting chaired by IMF Managing Director Kristalina Georgieva in Washington, with Pakistans agenda at the forefront.
Pakistan is expected to receive the first tranche of $1.1 billion by September 30, and the second tranche will also arrive within the same fiscal year after the loan programme approval.
The IMF loan will be provided at an interest rate of less than 5%.
Earlier, while speaking in New York, Prime Minister Shehbaz Sharif stated that they had fulfilled the IMFs stringent conditions and expressed gratitude to Saudi Arabia, China, and the United Arab Emirates, emphasizing that it would not have been possible without their support.
Two months back, Islamabad secured a three-year EFF agreement with the IMF aimed at achieving macroeconomic stability and inclusive growth. The country also completed a prior $3 billion loan program in April and received credit rating upgrades from Moodys and Fitch Ratings last month.
The ruling alliance government took measures for structural reforms and highlighted the recent decline in policy rates, stating that any borrowing would be done on the governments terms.
