Pakistan finally reaches staff-level agreement with IMF: Bloomberg

• Sources say an official announcement in this regard is expected soon.
• Staff-level agreement will pave way for $1.2b disbursement, which is expected in August.
• Disbursal would offer relief to Islamabad as country's foreign-exchange reserves are depleting.

ISLAMABAD: Pakistan and the executive board of the International Monetary Fund (IMF) on Wednesdayreached a staff-level agreement that revived the $6 billion Extended Fund Facility (EFF) programme for the country,Bloomberg reported.

The move comes after the coalition government adhered to all "tough" conditions set by the global lender, including an increase in the price of petroleum products and energy tariffs, among others.

Sources told Geo.tvthat the official announcement in this regard is expected soon.

The staff-level agreement will pave way for a $1.2 billion disbursement, which is expected in August.

Bloomberg reported that the disbursal would offer relief to Islamabad as the country's foreign-exchange reserves are depleting so much so that they can only cover less than two months of imports.

In June, Pakistan and the Fund staff achieved substantial progress to strike a consensus on budget 2022-23 after which the IMF shared a draft Memorandum of Economic and Financial Policies (MEFP).

Finance Minister Miftah Ismail on June 28 announced that Pakistan had received the MEFP from the IMF for the combined seventh and eighth reviews.

The IMF in June 2019 approved a three-year, $6 billion loan "to support Pakistan’s economic plan, aimed at returning "sustainable growth to the country’s economy and improving the standards of living".