The Executive Board of the International Monetary Fund has approved a $1.32 billion financing package for Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
The decision, announced following a board meeting in Washington, D.C., allows for the immediate disbursement of approximately $1.1 billion under the EFF arrangement and around $220 million under the RSF program, News.Az reports, citing Business Recorder.
The latest approval brings Pakistan’s total disbursements under both IMF arrangements to nearly $4.8 billion.
Pakistan’s 37-month EFF program, approved in September 2024, is aimed at strengthening macroeconomic stability, rebuilding foreign exchange reserves and supporting long-term economic growth. The reform agenda includes widening the tax base, improving public financial management, reforming state-owned enterprises and boosting investment in health, education and social protection.
Meanwhile, the RSF arrangement focuses on climate resilience and sustainability reforms, including disaster preparedness, water resource management, climate-risk disclosure and support for Pakistan’s environmental commitments.
IMF Deputy Managing Director Nigel Clarke said Pakistan’s implementation of reforms under the EFF program had helped improve macroeconomic stability and strengthen fiscal and foreign exchange buffers.
According to the IMF, Pakistan’s GDP growth accelerated during the first nine months of fiscal year 2026, while inflation remained under control and the current account stayed broadly balanced.
However, Clarke warned that Pakistan still faces a highly uncertain external environment, particularly amid ongoing tensions and conflict in the Middle East.
The IMF also urged Pakistani authorities to continue fiscal consolidation efforts, improve tax collection, maintain prudent monetary policies and preserve exchange-rate flexibility to protect the economy from external shocks.
The fund further stressed the importance of continuing structural reforms, including anti-corruption measures, privatization efforts and improvements to the business environment in order to attract private investment and support sustainable economic growth.
The approval follows a staff-level agreement reached between IMF officials and Pakistani authorities in March after extensive policy discussions held in Karachi and Islamabad.
