Islamabad: The International Monetary Fund (IMF) announced the completion of 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)’, news sources reported.
The final approval, however, will be taken by the IMF executive board after a review of the suggested policy changes.
The fund also announced that following the review completion, the government will have access to 750 million pledged to it through special drawing rights (SDR) that would be equivalent to USD 1,050 million. In its review published on the IMF website, the fund announced that Pakistan’s economy will grow to 4% in Fiscal Year 2022 while 4.5% in the next fiscal year.
As per the reports, the IMF has lauded the government for implementing crucial policy changes including the National Electric Power Regulatory Authority (NEPRA) Act Amendments, finalization of the National Socio-economic Registry (NSER), payment of the first tranche of outstanding arrears to independent power producers (IPPs) and also anti-money laundering and combatting the financing of terrorism (AML/CFT) regime.
Recently, the State Bank of Pakistan has revised the policy rate to 8.75% from 7.25% to respond to the increasing market pressure and to manage CAD.
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