Islamabad: According to press reports, the International Monetary Fund (IMF) completed a staff-level agreement with the government of Pakistan ‘on policies and reforms needed to complete the sixth review under the USD 6 billion Extended Fund Facility (EFF)’ on Monday (November 21). However, after a review of the proposed policy adjustments, the IMF executive board will provide its final approval.
The fund also said that after the study is completed, the government will have access to 750 million special drawing rights (SDR) allocated to it, which is equivalent to USD 1,050 million. This brings the total EFF payouts to USD 3.027 billion.
In a report released on the IMF website, the fund predicted that Pakistan’s economy will grow by 4% in Fiscal Year 2022 and 4.5 percent the following fiscal year. However, it also stated that inflation and the current account deficit (CAD) will increase in the current fiscal year (FY22).
According to reports, the IMF praised the government for enacting key policy changes such as the National Electric Power Regulatory Authority (NEPRA) Act Amendments, the completion of the National Socio-economic Registry (NSER), the payment of the first tranche of outstanding arrears to independent power producers (IPPs), and the implementation of an anti-money laundering and counter-terrorist financing (AML/CFT) regime.