IMF Approves Financial Assistance for Pakistan and Lebanon’s Economic Programs
The IMF has approved a 37-month $7 billion EFF arrangement for Pakistan, allowing immediate access to $1 billion and a potential $1.3 billion through the RSF. For Lebanon, an ongoing engagement aims to develop a comprehensive economic reform program addressing significant challenges. Both countries require robust strategies for economic stability and growth.
On September 25, 2024, the International Monetary Fund (IMF) Executive Board approved a 37-month Extended Fund Facility (EFF) arrangement for Pakistan, amounting to $7 billion. This agreement allows for immediate access to approximately $1 billion, with an additional $1.3 billion accessible via the Resilience and Sustainability Facility (RSF) throughout the duration of the arrangement.
IMF spokesperson Julie Kozack elaborated on the arrangement, noting that the First Review mission concluded recently, culminating in a staff-level agreement on March 25, 2025. The EFF arrangement allows for disbursement, subject to approval by the IMF’s Executive Board, ensuring access to the funds strategically distributed over time through the RSF.
Regarding Lebanon, Kozack indicated that an IMF fact-finding mission was conducted from March 10 to 13, 2025. During this mission, the IMF welcomed the Lebanese authorities’ request for a new program aimed at addressing significant economic challenges. Discussions and engagements are ongoing to assist in the formulation of a comprehensive economic reform agenda.
The IMF emphasized that the key to Lebanon’s recovery lies in a robust strategy for economic rehabilitation, which should address critical areas such as fiscal sustainability, financial restructuring, governance improvements, and the management of state-owned enterprises. Additionally, enhancing data provision is essential for increasing transparency and informing effective policymaking. Updates on this situation are to be communicated as developments occur.
In conclusion, the IMF has taken significant steps to assist both Pakistan and Lebanon through structured financial arrangements. Pakistan’s 37-month EFF, amounting to $7 billion, aims to facilitate immediate economic relief, while Lebanon is poised to receive guidance in developing a comprehensive economic reform program essential for its recovery. Continuous engagement and constructive discussions with the authorities of both nations remain vital for the success of these programs.
Original Source: mediacenter.imf.org
