KARACHI: IMF staff and Pakistani authorities have reached a staff-level agreement on the first review under Pakistan’s Extended Fund Facility (EFF) and on a new arrangement under the Resilience and Sustainability Facility (RSF), the IMF said on Tuesday. 

Islamabad secured the $7 billion EFF last summer to help claw its way out of an economic crisis, with an immediate disbursement of about $1 billion.

“The strong implementation of the EFF-supported program continues, and the authorities remain committed to advancing a gradual fiscal consolidation to sustainably reduce public debt, maintaining a sufficiently tight monetary policy to keep inflation low, accelerating cost-reducing energy sector reforms to enhance its viability, and implementing Pakistan’s reform agenda to accelerate growth, while strengthening social protection and health and education spending,” the IMF said in a statement as it announced the staff-level agreement. 

The agreement comes after an IMF team led by Nathan Porter held discussions from February 24-March 14 in Karachi and Islamabad.

The review will ensure “total access over the 28 months of around $1.3 billion,” the IMF said.

“The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about $1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about $2.0 billion.”

Porter said over the past 18 months, Pakistan had made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment. 

“While economic growth remains moderate, inflation has declined to its lowest level since 2015, financial conditions have improved, sovereign spreads have narrowed significantly, and external balances are stronger,” the statement said. 

Porter said it was critical to entrench the progress achieved over the past one and a half years, building resilience by further strengthening public finances, ensuring price stability, rebuilding external buffers and eliminating distortions in support of stronger, inclusive and sustained private sector-led growth.

The IMF program has played a key role in stabilizing Pakistan’s economy and the government has said the country is on course for a long-term recovery.

Meanwhile, the RSF will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improving the efficient and productive use of water, strengthening the climate information architecture to improve disclosure of climate risks, and aligning energy sector reforms with mitigation targets.

ISLAMABAD: Pakistan’s Foreign Office on Tuesday responded to reports of a group of Pakistani journalists traveling to Israel, saying it was not “possible” under the existing rules.
Israel Hayom, a Hebrew-language Israeli newspaper, last week published a report that a 10-member Pakistani delegation of journalists, intellectuals and influencers had visited Israel for a week.
English-language Israeli newspaper The Jerusalem Post said this week these Pakistanis visited Israel to learn about the Holocaust and the October 7, 2023 attacks by Hamas.
Pakistan does not recognize Israel and has consistently called for an independent Palestinian state based on “internationally agreed parameters” and pre-1967 borders.
“The Government of Pakistan has noted reports regarding Pakistani journalists traveling to Israel. In this regard, it is clarified that Pakistani passports explicitly state they are ‘not valid for travel to Israel’,” the Pakistani Foreign Office said in response to media queries.
“Therefore, no such visit is possible under existing regulations.”
The Hayom newspaper report said the ten Pakistani journalists and researchers, including two women, arrived in Israel this month and carried passports declaring their invalidity for travel to Israel.
“Despite this, they bravely accepted an invitation from Sharaka, an organization working to strengthen relations between Israel and South Asian countries,” the report said. “To protect the delegation members, their passports were not stamped, and publication of their visit was delayed until they returned safely home.”
However, the Foreign Office in Islamabad said Pakistan’s position on Israel “remains unchanged.”
“Pakistan does not recognize Israel and steadfastly supports the legitimate rights of the Palestinian people, including the establishment of an independent and sovereign Palestinian state based on pre-1967 borders,” it said. 
The South Asian country has consistently called for a cessation of Israeli military campaign in Gaza and strongly condemned the resumption of Israeli strikes in the territory last Tuesday, saying they could fully reignite the 17-month-old war that has killed more than 48,000 Palestinians.
Islamabad has also dispatched more than two dozen aid consignments for the Palestinian people since Israel began pounding Gaza in Oct. 2023.
“Pakistan reiterates its unwavering commitment to a just and peaceful resolution of the Palestinian issue in accordance with relevant UN resolutions and the aspirations of the Palestinian people,” the Pakistani Foreign Office added.