International Monetary Fund final review of Pakistan’s three-year economic reform program
The International Monetary Fund (IMF)
Executive Board has completed the twelfth and final review of Pakistan’s
three-year economic reform program supported by an Extended Fund Facility (EFF)
arrangement.
Key facts:
- The Board’s decision enables the
immediate disbursement of the final tranche in an amount equivalent to the
SDR 73 million in the IMF currency or about $102.1 million.
- The go-ahead follows the approval
on September 4, 2013, by the Executive Board of the 36-month extended
arrangement under the EFF in the amount of SDR 4.393 billion (about $6.15
billion, or 216% of Pakistan’s current quota at the IMF).
What is Extended Fund Facility (EFF)
arrangement?
It is an IMF lending facility to help members
with balance of payments problems that need an adjustment period longer than
that provided for under a standby arrangement.
- A country requesting an extended fund facility
outlines its objectives and policies for the period of the arrangement,
usually about three years, and each year presents a detailed statement of
the measures it plans over the next 12 months.
What is the EFF designed for?
The EFF was established to provide assistance
to countries: (i) experiencing serious payments imbalances because of
structural impediments; or (ii) characterized by slow growth and an inherently
weak balance of payments position. The EFF provides assistance in support of
comprehensive programs that include policies of the scope and character
required to correct structural imbalances over an extended period.
