IMF and Pakistan collaborate on $1 billion resilience and sustainability facility

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are currently engaged in preparations for the Resilience and Sustainability Facility (RSF), which will be presented to the Fund’s Executive Board. This information was shared by Julie Kozack, the IMF’s Communications Department Director, during a press briefing.

In response to a question about the RSF, Kozack noted, “Pakistan has indeed expressed interest in an RSF arrangement. Our team is working closely with the authorities on this preparatory work.” She emphasized that substantial background work is required to finalize discussions regarding any potential RSF, and like any program, it will need to be reviewed by the Executive Board.

Kozack also highlighted that on September 25th, the Executive Board approved a new 37-month, $7 billion Extended Fund Facility (EFF) arrangement. She outlined key priorities under the EFF, which include enhancing policymaking, building economic and climate resilience, and implementing reforms to promote more robust, sustainable, and inclusive growth.

Following a recent mission in Pakistan, which took place from November 12th to 15th, the IMF team reported feeling encouraged by the authorities’ reaffirmation of their commitment to the program.

When asked about a revenue shortfall, the IMF indicated that this issue would be evaluated during the upcoming full review mission. As part of this review, the team will assess all program targets, including those related to fiscal matters.

It was noted that under Pakistan’s EFF arrangement, reviews are conducted semi-annually, meaning twice a year. However, it is standard practice to conduct a brief staff visit between these semi-annual missions.