IMF Reaches Staff-Level Deal, Unlocks $1.2bn for Pakistan

IMF reaches staff-level agreement with Pakistan, unlocking $1.2bn disbursement under EFF and RSF, subject to board approval.

Read more: IMF to Review Pakistan $1.2 billion Loan

The International Monetary Fund (IMF) has reached a staff-level agreement (SLA) with Pakistan for the disbursement of approximately $1.2 billion, subject to board approval, following the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).

According to the IMF, the agreement reflects Pakistan’s continued progress in implementing macroeconomic stabilisation policies, including strengthening public finances, maintaining inflation within the target range of the State Bank of Pakistan, and advancing structural reforms.

IMF Mission Chief Iva Petrova said the disbursement would include about $1.0 billion under the EFF and $210 million under the RSF, bringing total disbursements under both programmes to around $4.5 billion.

The Fund noted that Pakistan’s economic recovery has gained momentum, with inflation contained and external buffers improving. However, it warned that ongoing geopolitical tensions in the Middle East could impact growth and inflation through volatile energy prices.

The IMF emphasised continued fiscal discipline, tax reforms, and energy sector restructuring, including reducing circular debt and ensuring cost-recovery tariffs. It also highlighted the importance of expanding social protection through programmes such as the Benazir Income Support Programme (BISP).