Pakistan: Third Review Under the Extended Arrangement Under the Extended Fund Facility and Second Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Pakistan

This paper highlights Pakistan’s Third Review under the Extended Arrangement under the Extended Fund Facility (EFF) and Second Review under the Resilience and Sustainability Facility Arrangement. The authorities’ strong implementation, despite the Middle East war, has maintained economic stability and improved financing and external conditions. Pakistan’s policy efforts under the EFF arrangement have delivered significant progress in stabilizing the economy and rebuilding confidence amid a challenging global environment, including the ongoing Middle East war. The shocks emanating from the Middle East war underline the continued importance of maintaining strong policies to continue building resilience and of moving ahead with structural reforms to achieve sustainable long-term growth. Policy priorities remain centered on maintaining macroeconomic stability and advancing reforms to strengthen public finances, enhance competition, raise productivity and competitiveness, bolster the social safety net and human capital, reform state-owned enterprises, and improve public service provision and energy sector viability.