The International Monetary Fund (IMF) has confirmed that Pakistan has requested a Resilience and Sustainability Facility (RSF), and the Fund’s team is currently engaged in preparatory work with Pakistani authorities.
Responding to a query about the RSF, Director of the IMF’s Communications Department Julie Kozack stated, “Our team and the authorities are engaged in preparatory work. However, significant background work remains to finalize discussions around any potential RSF arrangement, which would ultimately need Executive Board consideration.”
According to the IMF website, the Resilience and Sustainability Facility (RSF) provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.
The IMF official highlighted the broader objectives of the IMF’s 37-month, $7 billion Extended Fund Facility (EFF) approved in September. “The EFF focuses on strengthening policymaking, enhancing economic and climate resilience, and implementing reforms to support inclusive and sustainable growth,” Kozack noted.
Commenting on the IMF team’s recent visit to Pakistan from November 12 to 15, Kozack described the staff’s engagement as positive, with Pakistani authorities reaffirming their commitment to the EFF program.
However, she acknowledged ongoing assessments of fiscal performance, including revenue shortfalls, which will be reviewed in depth during the upcoming full review mission.
“The semi-annual reviews under Pakistan’s EFF are standard practice, and interim staff visits, such as this one, are customary to evaluate progress between those reviews,” Kozack explained. She emphasized that all program targets, including fiscal metrics, would be assessed in the forthcoming review mission.
Pakistan and the Asian Development Bank (ADB) on Tuesday signed a $500 million loan agreement for the Climate and Disaster Resilience Enhancement Programme (CDREP) to boost the country’s perseverance against catastrophes triggered by natural hazards and the impacts of environmental crises.
