The International Monetary Fund (IMF) has approved the letter of intent submitted by Pakistan, marking a significant development towards the delivery of the US $1.17 billion tranche.
The LOI received from Pakistan has been signed by the IMF and returned to the nation that will now sign it, according to people with knowledge of the issue.
They added that the letter of intent was created by Pakistan a month ago and that since then, the IMF has been satisfied with its points and action plan. “Pakistan will send back the signed LOI to the IMF today,” they said.
The Extended Fund Facility (EFF) program’s revival was approved by the International Monetary Fund (IMF) on August 02, and it was determined that Pakistan had met all of the goals set for the program.
The last move was completed on July 31 by extending the levy on petrol, according to Esther Perez Ruiz, the IMF’s resident representative in Islamabad, who claimed that Pakistan had met all of the financial goals established by the organization.
The 7th and 8th reviews have been finished, according to Ruiz, and the Executive Board of the Fund will convene in the third week of August.
Esther Perez hoped that until the board meeting, Pakistan will take action to close the financing deficit.
A staff-level agreement for the release of US$1.17 billion under the combined 7th and 8th reviews of Pakistan’s Extended Fund Facility was made on July 14 between the International Monetary Fund (IMF) and Pakistan (EFF).
The agreement must be approved by the IMF Executive Board, according to a statement from the Fund.
