This paper proposes a package of policy reforms and a funding strategy to ensure that the Fund has the capacity to respond flexibly to LICs' needs during the pandemic and recovery. The key policy reforms proposed include: * raising the normal annual/cumulative limits on access to PRGT resources to 145/435 percent of quota, the same thresholds for normal access in the GRA; * eliminating the hard limits on exceptional access (EA) to PRGT resources for the poorest LICs, enabling them to obtain all financing on concessional terms if the EA criteria are met; * changes to the framework for blending concessional and non-concessional resources to make it more robust and less complex; * stronger safeguards to address concerns regarding debt sustainability and capacity to repay the Fund; and * retaining zero interest rates on PRGT loans, consistent with the established rules for setting these interest rates.