Which multilateral financial mechanism has Pakistan used alongside CPEC to manage its balance of payments challenges?
Q1. Which multilateral financial mechanism has Pakistan used alongside CPEC to manage its balance of payments challenges?
Answer: IMF Extended Fund Facility
Explanation: Pakistan concluded an IMF Extended Fund Facility (EFF) agreement in 2023 to stabilise its economy, complementing CPEC investments which alone cannot resolve short-term balance of payments deficits. The IMF program required structural reforms as conditions for disbursements.