The International Monetary Fund (IMF) has reached a tentative agreement with Pakistan at the staff level.

Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement. Pending approval from the Executive Board of the IMF, Pakistan is slated to receive USD 700 million. The IMF acknowledges Pakistan's achievement of economic targets, foresees a potential reduction in inflation in the coming months, and pledges to maintain a market-based exchange rate while alleviating pressure on the exchange market. Reforms are committed to fostering investment and employment opportunities.

The IMF notes ongoing economic recovery under the program, citing the support of friendly countries for economic stability in Pakistan. The implementation of the federal budget is credited with maintaining policy continuity, along with timely adjustments in electricity and gas prices. Pakistan's commitment to institutional reforms and improvements in social assistance programs is also acknowledged, contributing to a lessening of external economic pressures from escalating energy prices and foreign exchange concerns.

However, the IMF highlights potential challenges for Pakistan, including external threats, geopolitical tensions, rising commodity prices, and the need for sustained efforts amid challenging global financial conditions. Priorities outlined include enhancing macroeconomic sustainability, achieving balanced growth, and reducing public debt to ensure financial stability.