Explanation

Prior to the World Bank’s funding, Pakistan secured a $7 billion loan from the International Monetary Fund (IMF). This loan was approved under a 37-month Extended Fund Facility (EFF) arrangement. The IMF board’s approval of this program is crucial for Pakistan’s economic stability and growth. The $7 billion loan from the IMF was a significant step in Pakistan’s efforts to address its economic challenges and secure funding for its development programs. The loan was aimed at stabilizing the country’s economy and creating conditions for stronger, more inclusive, and resilient growth. It also allowed Pakistan to meet its external financing needs and repay its debts.