IMF board approved revival of EFF program

The finance minister, Miftah Ismail, stated on Monday, August 2nd, that the international monetary fund’s executive board has approved our appeal of the seventh and eighth tranches worth 1.17 billion dollars of its stalled extended fund facility (EFF), a revival of the EFF program.

The executive board approved the revival of the EFF program as our current Shahbaz Shareef government appeal after a long month’s effort.

The IMF, a global lender, also approved the increase in loan size and extended it till June 2023.

“Alhamdolillah, the IMF Board has approved the revival of the EFF program.” We should now be getting the 7th and 8th tranches of $1.17 billion, ” Miftah Ismail stated on Twitter.

The minister went straight to Prime Minister Shahbaz Shareef and congratulated him by saying, “Thank you for making a tough decision and saving Pakistan from the time of destruction.” Miftah Ismail also congratulated the nation on the revival of the EFF program.

The EFF will be extended until the end of June 2023, rephasing and augmenting access by SDR 720 million, bringing the total direct exposure under the EFF to approximately $6.5 billion, the Fund continued, in order to assist programme implementation, meet the increased financing needs in FY23, and “catalyse additional financing.”

Role of IMF in Pakistan Economy and Why does every administration seek its assistance?

“Pakistan is in a tough economic phase right now. Stimulative policy positions and a challenging external environment increased domestic consumption to unsustainable levels.” The international lending institution noted, adding that the ensuing economic overheating resulted in significant fiscal and foreign deficits in FY22, fueled inflation, and reduced reserve buffers.

However, uncertain support from the IMF program has been awaiting the revival of the EFF program.

Meanwhile, the previous PTI government has breached all agreements assigned to the fund program to provide relief to the nation by lending the nation loans. However, previous government decisions have given the current government quite a hard time regarding making tough decisions and the board for the revival of the EFF program.

Prime Minister Shahbaz Shareef said, “The revival of the EFF program is a major step in making efforts to put Pakistan’s economy back on track.” He also said the revival of the EFF program will put our nation back on track as we are suffering from destruction because of floods.

Shahbaz Shareef added more by saying, “I hope Pakistan doesn’t go back to the IMF in the future.” as he prayed for the nation’s stability and hoped this is the last program with global lenders.

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