A prior condition noted in the 12 May press release uploaded on the IMF website subsequent to the staff level agreement stipulated that "financing support from Pakistan's international partners will be critical to support the authorities' adjustment efforts and ensure that the medium-term program objectives can be achieved."
The IMF Board of Directors supported the 39-month extended arrangement under the Extended Fund Facility (EFF) for Pakistan for an amount of about $6 billion, with India abstaining. Sources further revealed that many ED welcomed the front loading of prior actions and ownership of the government as mitigating measures; and highlighted the 'risky operation' given Pakistan's weak record and the magnitude of macroeconomic challenges.
Other EDs called their support for Pakistan 'a leap of faith' with many seeking contingency measures if the adjustment was not as expected in the programme. Many EDs emphasized the importance of communications, ie., IMF and government of Pakistan working together rather than separately to ensure public support for the programme.
The Board of Directors also stressed the importance of social safety nets and to work on current challenges with respect to structural benchmarks and quantitative targets to be achieved during the programme. The Board also discussed Financial Action Task Force (FATF) action plan for Pakistan and urged its implementation by October. The IMF Board expressed satisfaction over the focus on revenues, fiscal management and debt sustainability and transparency by the government of Pakistan and deliberated and noted the importance of energy prices reforms, SOEs, tight monetary policy and central bank independence.