Pakistan will have access to a total of $2.3 billion under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) following Staff Level Agreements (SLA), said Director of the Communications Department at the International Monetary Fund (IMF) Julie Kozack.
Speaking at a media briefing at the IMF headquarters in Washington, Kozack recalled that the IMF Executive Board had approved a $7 billion EFF programme for Pakistan on September 25 last year, spread over 37 months.
She added that a staff-level agreement on the first review of the EFF was reached on March 25 this year, along with another staff-level deal under the RSF.
She said under the EFF arrangement, which is the first review under the program, Pakistan will have access to $1 billion after the formal approval by the IMF's Executive Board.
Similarly, Pakistan would be disbursed an amount of $1.3 billion under the Resilience and Sustainability Facility, following the approval by the IMF's Executive Board.
The IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout programme earlier this week.
The new 28-month deal would support Pakistan's efforts to mitigate and adapt to climate change.
Meanwhile, the federal government is set to unveil the 2025-26 budget after extensive consultations with the IMF, according to sources within the Ministry of Finance.
An IMF delegation is expected to visit Pakistan in the coming weeks for further discussions, with both virtual and in-person negotiations continuing until the budget’s finalisation, the sources said.
The budget, slated for presentation in early June, will incorporate economic policies and fiscal measures in line with IMF recommendations.
Officials disclosed that the IMF has agreed to offer limited relief in the real estate sector. Under the new budget, the federal excise duty on the first property sale will be eliminated, though withholding and income tax rates will remain unchanged.
The IMF Executive Board is anticipated to approve these recommendations by late May or June, coinciding with the budget's completion. Failure to adhere to IMF conditions could jeopardise Pakistan’s access to climate-related financial aid.