ISLAMABAD, June 30 (Xinhua) -- The International Monetary Fund (IMF) and the Pakistani authorities have reached a staff-level agreement on policies to be supported by a Stand-By Arrangement (SBA), the IMF has said.
The staff-level agreement on a nine-month SBA in the amount of around 3 billion U.S. dollars is subject to approval by the IMF Executive Board, with its consideration expected by mid-July, said the IMF on Thursday.
The new SBA will support the authorities' immediate efforts to stabilize the economy from recent external shocks, preserve macroeconomic stability and provide a framework for financing from multilateral and bilateral partners, the global lender said.
It added that the new SBA would also create space for social and development spending through improved domestic revenue mobilization and careful spending execution to help address the needs of the Pakistani people.
"Steadfast policy implementation is key for Pakistan to overcome its current challenges, including through greater fiscal discipline, a market-determined exchange rate to absorb external pressures, and further progress on reforms, particularly in the energy sector, to promote climate resilience and to help improve the business climate," according to the IMF. ■
