Extended Fund Facility (EFF):
The IMF Executive Board approved an immediate disbursement of $1 billion to Pakistan under the Extended Fund Facility (EFF).EFF is an IMF lending mechanism designed to help countries facing prolonged balance of payments problems due to deep structural economic weaknesses.Governed by: International Monetary Fund (IMF), part of Bretton Woods institutions.
Loan Type: Repayable loan, not a grant or financial aid. Tenure: Extended period (3+ years), with longer repayment timelines than standard IMF loans. Purpose: Facilitates medium-term structural reforms — e.g., improving tax systems, reducing inflation, curbing unsustainable fiscal deficits. Disbursement: Tranches released based on periodic reviews of policy implementation by the borrowing country.
