Pakistan Finalizes SLA Deal For $1.3bn Funding With IMF

IMF - The News Today - TNT
Islamabad:  Rising tobacco and nicotine use among Pakistan’s youth, especially around educational institutions, emerged as the central concern at a national review session on tobacco control held by the Aurat Foundation in Islamabad. Participants from Parliament, government departments, health organizations, and civil society warned that easy availability of cigarettes, vapes, nicotine pouches, and flavored tobacco near schools is creating a growing public health threat. The discussion also pointed to a noticeable increase in tobacco use among women, indicating a shifting trend. The session called for stronger legislation, faster policy action, and strict enforcement to counter the rapid spread of emerging nicotine products. Speakers emphasized that existing laws remain poorly implemented due to procedural delays, weak monitoring, and limited coordination between federal and provincial bodies. The need for clear parental awareness, community engagement, and better recognition of new nicotine products was highlighted as an essential part of early prevention. Officials noted that families and schools often remain unaware of modern products marketed to young people. Technical briefings identified major enforcement gaps and policy loopholes that allow the tobacco industry to expand its reach. Participants noted that companies are increasingly using social media trends, entertainment content, and youth-focused marketing to promote vaping in urban areas. Government representatives reaffirmed ongoing federal efforts to implement the Prohibition of Smoking and Protection of Non-Smokers Health Ordinance 2002 and to tighten regulations where required. Provincial representatives also announced plans to introduce new resolutions to strengthen tobacco control. Education sector officials raised alarms over the rise of nicotine products around private institutions and called for tougher regulatory checks. Regulatory authorities stressed the need for a broader social movement to counter tobacco use nationwide. Closing the event, the Aurat Foundation reiterated its commitment to evidence-based advocacy, cross-sector collaboration, and long-term public awareness initiatives aimed at building a healthier, tobacco-free society.

ISLAMABAD: Pakistan has finalized the staff-level agreement with the International Monetary Fund (IMF) on the first economic review under the Extended Fund Facility (EFF), securing a $1 billion tranche subject to board approval.

Additionally, a new $1.3 billion arrangement has been finalized under the Resilience and Sustainability Facility (RSF), bringing the total financing package to $2.3 billion.

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In a statement issued on Wednesday, the IMF acknowledged Pakistan’s efforts in stabilizing its economy despite global headwinds over the past 18 months.

The Fund noted improvements in fiscal discipline, declining inflation, and stabilisation of external balances.

However, it cautioned that geopolitical risks, fluctuating commodity prices, and climate-related challenges continue to pose significant threats to economic recovery.

The staff-level agreement follows extensive discussions between Pakistani authorities and an IMF delegation, led by Nathan Porter, during a mission held from February 24 to March 14 in Karachi and Islamabad.

The IMF emphasized the need for continued economic stabilization and structural reforms, particularly in taxation, energy, and governance. It urged the government to broaden the tax base—especially through effective implementation of agricultural income tax—while phasing out energy sector subsidies.

The Fund also underscored the importance of a tight monetary policy to anchor inflation within the 5-7% range over the medium term.

Pakistani authorities reaffirmed their commitment to maintaining fiscal prudence and sustaining ongoing reforms.

The government has pledged to protect social welfare initiatives, such as the Benazir Income Support Programme (BISP), while prioritizing spending in health, education, and climate resilience projects.

The IMF reiterated the urgency of implementing electricity and gas tariff adjustments to curb circular debt. It urged efficiency improvements in power transmission and distribution, along with governance reforms in the Pakistan Sovereign Wealth Fund to enhance investment potential.

Under the RSF, the $1.3 billion package will support climate resilience projects, including better water resource management, expansion of renewable energy, and promotion of green mobility to combat urban pollution.

The IMF Executive Board is expected to review the agreement in May. Upon approval, Pakistan will receive the $1 billion tranche under the EFF, while the RSF agreement will disburse an additional $1.3 billion over 28 months.

With foreign exchange reserves standing at $11.15 billion as of March 14, the IMF programme remains critical for Pakistan’s economic stability.

Read more: PSX Witnesses Bullish Trend After IMF Lift Investor Sentiment On Reko Diq

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