WHAT IS IMF’S EFF?

On July 3, 2019, the Executive Board of the International Monetary Fund (IMF) approved a 39-month extended arrangement under the Extended Fund Facility (EFF) for Pakistan for SDR 4,268 million (about $6 billion) to support the economic reform programme.

This aimed at helping Pakistan to reduce economic vulnerabilities and generate sustainable and balanced growth and focusing on

■ A decisive fiscal consolidation to reduce public debt and build resilience while expanding social spending;

■ A flexible, market-determined exchange rate to restore competitiveness and rebuild official reserves;

■ Eliminate quasi-fiscal losses in the energy sector; and

■ Strengthen institutions and enhance transparency.