Pakistan: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainable Facility -Press Release; Staff Report; and Statement by the Executive Director for Pakistan
IMF Staff Country Reports, May 17, 2025
Source details
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- Pakistan: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of Performance Criteria and Request for an Arrangement Under the Resilience and Sustainable Facility -Press Release; Staff Report; and Statement by the Executive Director for Pakistan
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Bibliographic details
- Published: May 17, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229011310.002
Review outcome and financing
- The IMF Executive Board completed the first review under the Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw the equivalent of about $1 billion.
- The Executive Board also approved the authorities' request for an arrangement under the Resilience and Sustainable Facility (RSF), with access of around $1.4 billion.
Program implementation and economic effects
- Authorities have demonstrated strong program implementation, which has contributed to:
- improving financing and external conditions;
- a continuing economic recovery.
- Policy priorities moving forward include:
- advancing reforms to strengthen competition, raise productivity and competitiveness;
- reforming state-owned enterprises;
- improving public service provision and energy sector viability;
- building climate resilience.
Monetary policy and inflation
- The State Bank of Pakistan’s (SBP) tight monetary policy stance has been pivotal in reducing inflation to historic lows.
- Recommendation: Monetary policy should remain appropriately tight and data-dependent to ensure inflation is anchored within the SBP’s target range.
RSF objective and focus
- The RSF arrangement will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters.
Subject coverage and keywords (as listed)
- Subjects: Climate change, Climate policy, Energy prices, Energy pricing, Environment, Expenditure, Inflation, Natural disasters, Oil prices, Prices, Public debt, Revenue administration
- Keywords: Climate change, Climate policy, energy inflation, Energy prices, Energy pricing, energy-inflation Passthrough, enterprise risk, fund disbursement, Global, Inflation, inflation Passthrough, inflation surge, monetary policy committee, Natural disasters, Oil prices, Pakistan CCDR, Policy discussion, policy priority, policy rate remains, price flexibility
Content in this bundle
- 1pakea2025001-print-pdf