ISLAMABAD – Pakistan is on the brink of a crucial financial lifeline as the IMF’s Executive Board gears up to meet in the second week. The South Asian nation awaits decision that could release $1.2 billion into its fragile economy after weeks of negotiations, governance reforms, and a long-delayed assessment report which now hangs in the balance.
The global lender scheduled critical Executive Board meeting on December 8, where it is expected to approve the release of $1.2 billion for Pakistan under two ongoing loan programmes. The much-anticipated funds, split between the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), are expected to land in Pakistan’s reserves on December 9, offering a crucial cushion for the fragile economy.
The decision comes after Staff-Level Agreement (SLA) reached in October this year after weeks of intense negotiations. Under the deal, Islamabad will secure $1 billion from the $7 billion EFF and $200 million from the $1.4 billion RSF. With this, total disbursements under both facilities will reach around $3.3 billion.
According to the IMF’s Executive Board schedule, two separate meetings will be held on December 8, one for Pakistan and the other for Somalia.
IMF Wants Pakistan to do more on Governance
Before crucial meeting, Islamabad must deliver on major pending condition, the publication of Governance and Corruption Diagnostic (GCD) Assessment Report. The report faced multiple delays, later pushed to August and October, due to disputes between Pakistan’s policymakers and IMF technical experts.
IMF’s diagnostic study was meticulous examination of Pakistan’s governance systems, involving technical and legal specialists from the OECD and FATF.
IMF, Pakistan reach staff-level agreement on $1.2bn bailout to strengthen economy
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