The International Monetary Fund (IMF) announced on Thursday that it is engaged in ongoing virtual discussions with Pakistan concerning a new, homegrown Extended Fund Facility (EFF). Julie Kozack, IMF spokesperson and Director of Communications, provided this update during a press briefing in Washington.
Progress on the new EFF
Kozack highlighted that an IMF staff mission visited Pakistan from May 13 to May 23, during which substantial progress was made toward reaching a staff-level agreement on the proposed programme. This programme, which is designed to be homegrown, aims to align with the specific economic and financial conditions of Pakistan while receiving support under the new EFF framework.
“We made significant progress towards reaching a staff-level agreement on a homegrown programme that can be supported under a new EFF with the Fund. Those discussions are continuing virtually,” Kozack stated, indicating ongoing efforts to finalise the agreement.
Transparency measures
In response to a question regarding the IMF’s requirement for Pakistan to publish a list of properties owned by its politicians, Kozack noted that she did not have specific details on the progress of this condition. This measure is part of broader transparency and governance reforms often encouraged by the IMF to enhance accountability and ensure effective use of financial assistance.
Background and context
The Extended Fund Facility is an arrangement by the IMF to assist countries facing medium-term balance of payments problems due to structural weaknesses. It provides support through economic policies and reforms aimed at stabilising the economy, fostering sustainable growth, and reducing poverty.
For Pakistan, securing a new EFF is crucial as it seeks to stabilise its economy, manage debt levels, and implement structural reforms. The homegrown nature of the proposed programme indicates that it is tailored to address Pakistan’s unique economic challenges while fostering ownership and commitment to the reforms.