KARACHI – Pakistan has reached staff level agreement on an International Monetary Fund (IMF) bailout of $7 billion after implementing lender’s requirements in its annual budget.

International Monetary Fund (IMF) announced staff-level agreement with Pakistani government, the lender made the announcement. IMF commended Pakistan for adhering to the terms set out in the Stand-by Arrangement (SBA) signed by the Shehbaz Sharif-led PDM government in 2023.

Pakistan will receive the funds over the next three years, provided it meets the commitments made to the IMF, which include implementing comprehensive taxation and privatizing state-owned enterprises. Additionally, Pakistan must secure additional loans from allies such as China, Saudi Arabia, and the UAE.

According to the IMF's statement, the new 37-month EFF arrangement builds on the economic stability achieved under the 2023 SBA and is pending approval by the IMF’s Executive Board. The program aims to enhance macroeconomic stability and foster conditions for stronger, more inclusive, and resilient growth.

The program's key components include strengthening fiscal and monetary policies, broadening the tax base, improving the management of State-Owned Enterprises (SOEs), fostering competition, creating a level playing field for investment, enhancing human capital, and expanding social protection through increased support and coverage in the Benazir Income Support Program (BISP).

The IMF emphasized that continued robust financial support from Pakistan’s development and bilateral partners is crucial for the program’s success.