Pakistan and the International Monetary Fund (IMF) reached an agreement for a $7 billion, 37-month loan program with tough measures such as raising tax on farm income.
The staff-level agreement (SLA) caps negotiations that started in May 2024 after Pakistan completed a short-term, $3 billion program that helped stabilize the economy, avert a sovereign debt default, and set challenging revenue targets in its budget to get IMF approval.
The staff-level agreement (SLA) is an important step in the IMF lending process, and it sets the stage for formal negotiations between the IMF and and the government on a loan program.
