Pakistan has reached a staff-level agreement (SLA) with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). This deal, worth $1.3 billion, is a key step toward economic stability and long-term growth.
Once approved by the IMF Executive Board, Pakistan will receive $1 billion under the EFF, bringing total disbursements to $2 billion. The RSF will support Pakistan in dealing with climate challenges, improving water management, strengthening budget planning, and advancing energy reforms.
What This Means for the Economy
In the past 18 months, Pakistan has stabilized its economy after being on the verge of default. Inflation is now at its lowest level since 2015, but economic growth remains slow. Experts emphasize the need for export-driven growth rather than relying on domestic consumption.
The IMF programme has unlocked new funding sources that Pakistan can use for investments. However, to avoid returning to the IMF in the future, Pakistan must move away from short-term, debt-fueled growth and focus on sustainable development.
With the right policies, Pakistan can transition from stability to long-term economic growth—without repeating past mistakes.