On July 12, a staff-level agreement between Pakistan and the IMF was reached. The global lender announced its preliminary agreement with Pakistan for a “37-month” loan of about $7 billion under the IMF’s Extended Fund Facility arrangement.

“This agreement is subject to approval by the IMF’s executive board and the timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners,” stated Friday’s announcement by the IMF. It did not mention a date for board action, which typically is a formality before the disbursement of funds.

“The new program aims to support the authorities’ efforts to cement macroeconomic stability and create conditions for a stronger, more inclusive and resilient growth,” said the IMF statement.

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Ministry of Finance sources said that the IMF board is likely to give its final approval within four to six weeks following the staff-level agreement.

However, Pakistan must secure external financing assurances before the board meeting, they added.

The lender is likely to consider Pakistan s proposed request for climate financing. Pakistan must identify long-term priority projects related to climate change, the sources further disclosed.

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The IMF s Resilience and Sustainability Facility (RSF) programme offers affordable, long-term financing.

To achieve these goals, Pakistan will need to collaborate with other global institutions, according to the Ministry of Finance.