The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan on reviews of some of its lending programmes, the fund said on Wednesday.
If the IMF board approves the deal, Pakistan could draw about $1 billion under the Extended Fund Facility and $210 million under the climate-focused Resilience and Sustainability Facility. Total disbursements under the two programmes would then reach around $5.7 billion.
The IMF said Pakistan’s authorities had managed the impact of the West Asia conflict and that strong policies had helped preserve macroeconomic stability. It added that risks remain elevated because of geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions.
Pakistan relies on external financing to support its foreign exchange reserves and meet debt repayments. Sri Lanka, which has its own IMF-supported programme, is also exposed to energy price swings linked to the region.
The agreement now goes to the IMF Executive Board for approval.
