The International Monetary Fund (IMF) announced on Tuesday Last October 14, having concluded a service agreement with Pakistan as part of its loan program. This loan will allow the country to access $1.2 billion, subject to board approval of administration of the Fund.

The IMF will grant Pakistan 1 billion dollars under the Extended Credit Facility (EFF) and 200 million dollars under the Resilience and Sustainability Facility, bringing the total of disbursements under these two schemes to approximately $3.3 billion. Countries benefiting from programs of IMF loans must pass regular reviews which, once validated by the Board of Directors of the Fund, trigger the payment of instalments of loans.

The IMF said in a statement that “supported by the FEC, Pakistan's economic program consolidates stability macroeconomic and restores market confidence.” The institution has specified that the recovery of the South Asian country remained on track, with controlled inflation, strengthened external reserves and improvement in financial conditions, as sovereign interest rate spreads have increased markedly reduced.

Pakistan is also committed to maintaining a monetary policy that is sufficiently restrictive and based on data, as well than to strengthen its climate resilience in the wake of floods recent devastating events.