- Deal covers latest reviews under $7bn Extended Fund Facility, RSF.
- Pakistan received around $1.32bn from IMF after previous review.
- Talks assessed Pakistan’s progress on fiscal, structural reforms.
ISLAMABAD: The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan following reviews of its ongoing loan programmes, potentially paving the way for up to $1.21 billion in fresh funding, the global lender said on Wednesday.
The agreement remains subject to approval by the IMF’s Executive Board, after which Pakistan could receive the funds under the facilities covered by the latest reviews.
The latest deal follows negotiations between the IMF mission and Pakistani authorities on the fourth review of the country’s $7 billion Extended Fund Facility (EFF) and the third review of the Resilience and Sustainability Facility (RSF).
The IMF programme, approved in September 2024, is aimed at strengthening Pakistan’s macroeconomic stability, rebuilding foreign exchange reserves and supporting sustainable economic growth.
The climate-focused RSF is intended to help the country address longer-term vulnerabilities and strengthen resilience.
The latest review came as Pakistan faces economic pressures from the wider regional conflict, including higher energy costs and risks to external financing and trade.
Recent talks also covered fiscal targets, energy-sector reforms and measures to address persistent circular debt.
The IMF has previously stressed the need for continued fiscal discipline, stronger revenue mobilisation and reforms in the energy sector as part of Pakistan’s economic stabilisation programme.
Pakistan received about $1.32 billion from the IMF in May after the Fund’s Executive Board completed the previous review under the EFF and RSF programmes.
The latest staff-level agreement, once endorsed by the IMF board, would provide another significant injection of external financing for Pakistan as the government seeks to maintain economic stability and build its foreign exchange buffers.
This is a developing story and is being updated with new details.
