A significant progress has been made toward a staff level agreement between Pakistan and the International Monetary Fund (IMF) under the Extended Fund Facility and the Resilience and Sustainability Facility, sources said.
They said that the IMF has shared a draft of the Memorandum of Economic and Financial Policies with the government. The staff level agreement is expected once both sides reach consensus on the draft document. Ministry of Finance has circulated the MEFP draft among relevant ministries and divisions for review, and consultations are currently underway.
According to sources, once all stakeholders agreed on the contents of the MEFP, the finalized draft would be sent back to the IMF. This will be followed by the issuance of a Letter of Intent (LoI) to be signed by the finance minister and the governor of the State Bank of Pakistan, assuring implementation of agreed reforms.