Islamabad: The International Monetary Fund (IMF) Executive Board on Monday approved the disbursement of USD 1.2 billion for Pakistan after completing the second review of the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF).
According to the IMF, the approval enables an immediate release of roughly USD 1 billion under the EFF and about USD 200 million through the RSF. With this tranche, total disbursements to Pakistan under the two arrangements have reached approximately USD 3.3 billion.
The Fund noted that Pakistan’s reform efforts have strengthened macroeconomic stability despite a challenging external environment. Fiscal performance remained strong, with a primary surplus aligned with programme targets. Foreign exchange reserves improved to USD 14.5 billion at the end of FY25, up from USD 9.4 billion a year earlier.
Nigel Clarke, IMF Deputy Managing Director and Acting Chair, said Pakistan’s policy discipline had helped stabilise growth, moderate imbalances, and anchor inflation expectations. He stressed that maintaining prudent fiscal and monetary policies would be essential to sustain stability and support private sector–led growth.
The IMF encouraged Pakistan to continue reforms focused on revenue mobilisation, energy sector efficiency, improved governance, and climate resilience. It also emphasised the need for greater exchange rate flexibility, stronger financial regulation, and deeper capital market development.
The approval follows earlier staff-level discussions held in Karachi, Islamabad, and Washington, where the IMF and Pakistani authorities reached an agreement on the review outcomes.
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