IMF to Review Pakistan $1.2 billion Loan

The IMF’s Executive Board is meeting today to review a $1.2 billion disbursement to Pakistan under ongoing loan programmes. If approved, the funds will support economic stability and climate-resilience efforts across the country.

Read more: IMF Flags Pakistan’s Weak Fiscal Governance Gaps

The International Monetary Fund Executive Board convened yesterday to consider a proposed $1.2 billion funding package for Pakistan, about $1.0 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF).

Pakistan and the IMF reached a staff-level agreement in October after negotiations in Karachi, Islamabad, and Washington. The funds are intended to help stabilise Pakistan’s economy, rebuild foreign exchange reserves, support energy-sector reform agenda, manage post-flood recovery efforts, and advance climate-resilience programmes.

Among the structural conditions agreed by Pakistan are maintaining fiscal discipline, keeping inflation within the State Bank of Pakistan (SBP)’s target range, and releasing a Governance and Corruption Diagnostic (GDC) report. Analysts say activation of this tranche could ease pressure on Pakistan’s balance of payments and signal improved investor confidence, but much depends on continued policy performance and reform implementation.