Pakistan secures $1.2B IMF funding, signals economic stability; deal awaits Executive Board approval under EFF and RSF programs. Photos: X.
The International Monetary Fund (IMF) comes to Pakistan’s rescue yet again. Pakistan has now reached a staff-level agreement with the IMF to secure $1.2 billion in funding, the Fund announced on Tuesday. However, the agreement, part of Pakistan’s ongoing loan programs, awaits final approval from the IMF’s Executive Board.
According to the reports, Pakistan will receive $1 billion through the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF). Once approved, these disbursements will bring the total funds received under both programs to approximately $3.3 billion.
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the second review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the first review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF). The staff-level agreement is subject to approval by the IMF Executive Board. Upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF and about US$200 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about US$3.3 billion,” the IMF said in an official statement.
The IMF has highlighted that Pakistan’s economic program, supported by the EFF. According to IMF Pakistan is rebuilding macroeconomic stability and market confidence. The Fund pointed to key indicators showing the country’s recovery remains on track, including contained inflation, stronger external buffers, and improving financial conditions as reflected in narrowing sovereign spreads.
“The recovery remains on track, with the FY25 current account recording a surplus—the first in 14 years, the fiscal primary balance surpassing the program target, inflation remaining contained, external buffers strengthening, and financial conditions improving as sovereign spreads have narrowed significantly,” the IMF said.
IMF officials stressed that the next tranche of funding will be released once the Executive Board completes its formal review, a standard step in the Fund’s lending framework where disbursements follow successful periodic assessments.
As part of the agreement, Pakistan has pledged to maintain a tight, data-driven monetary policy and enhance climate resilience- an urgent requirement following recent devastating floods.
“The authorities reaffirmed their commitment to the EFF- and RSF-supported programs, and to maintaining sound and prudent macroeconomic policies while advancing ongoing structural reforms,” the IMF statement added.
Finance Minister Muhammad Aurangzeb said the staff-level agreement marks a significant milestone, reflecting renewed investor confidence.
“The staff-level deal marks a major step forward,” Aurangzeb told reporters, according to Reuters, noting that the IMF team had concluded its review visit last week.
Also Read: Tensions Rise Between Pakistan-Afghanistan Along Durand Line, Heavy Firing Reported
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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