IMF Confirms Pakistan Meets All Economic Targets, EFF Disbursements Approved by Consensus
The International Monetary Fund (IMF) has confirmed that Pakistan met all the economic targets set under the Extended Fund Facility (EFF) program. This led to the IMF Executive Board’s consensus-based decision to approve funding disbursements.
The EFF program aims to stabilize Pakistan’s foreign exchange reserves and address balance of payments issues, not to finance the government budget directly.
IMF Communications Director Julie Kozack clarified that all disbursements under the EFF are credited directly to the reserves of Pakistan’s central bank (State Bank of Pakistan) and are not transferred to the government for budgetary spending.
Under the program, the central bank limits lending to the government to zero, safeguarding funds against misuse. The program also includes substantial structural conditionality focused on improving fiscal management and accumulating international reserves.
Despite objections from India regarding the timing and potential misuse of funds amid regional tensions, the IMF defended its decision, emphasising Pakistan’s adherence to all program conditions and the safeguards in place to prevent diversion of funds for military or other non-economic purposes.
The IMF also noted that any failure to meet the program’s conditions would affect future disbursements.
