In News
- The staff-level talks between Pakistan and the International Monetary Fund (IMF) concluded for the seventh and eighth review under Extended Fund Facility (EFF).
About Extended Fund Facility (EFF)
- It was established to provide assistance to countries experiencing serious payment imbalances because of structural impediments or slow growth and an inherently weak balance-of-payments position.
- It provides support for comprehensive programs including the policies needed to correct structural imbalances over an extended period.
- Purpose: It supports countries’ economic programs aimed at moving toward a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.
- The ECF may also help catalyse additional foreign aid.
- Eligibility : It is available to all Poverty Reduction and Growth Trust (PRGT)-eligible member countries that face a protracted balance of payments problem.
- Duration and repeated use. Assistance under an ECF arrangement is provided for an initial duration from three to up to five years, with an overall maximum duration of five years.
- Following the expiration, cancellation, or termination of an ECF arrangement, additional ECF arrangements may be approved.
- Focused conditionality: Under the ECF, member countries agree to implement a set of policies that will help them make progress toward a stable and sustainable macroeconomic position over the medium term.
- These commitments, including specific conditions, are described in the country’s letter of intent.
Source:TH
