ISLAMABAD (HRNW) – Pakistan and the International Monetary Fund (IMF) have successfully reached a staff-level agreement following productive negotiations under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) programs.
Financial Breakdown and Economic Outlook
According to the official statement issued by the IMF, the successful completion of this review will pave the way for significant financial inflows:
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EFF Tranche: Pakistan is set to receive an installment of $1 billion under the Extended Fund Facility.
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RSF Funding: An additional $210 million will be provided under the RSF loan program.
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Total Disbursements: With these latest approvals, total payments to Pakistan under both programs will reach a cumulative $4.5 billion.
Judicial Assessment of the Economy
The IMF acknowledged a positive trend in Pakistan’s economic indicators, noting that:
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Inflation and Deficit: Both inflation rates and the current account deficit have remained within manageable limits.
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External Reserves: There has been a notable increase in the country’s foreign exchange reserves.
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Ongoing Risks: Despite the progress, the IMF warned that economic risks remain high due to ongoing tensions in the Middle East, which could impact global stability.
Protection of Vulnerable Groups
The global lender emphasized the need for structural protections, urging the Pakistani government to implement measures that shield the most vulnerable segments of society from the impact of rising energy costs. This focus on social safety nets remains a core component of the ongoing reform agenda.
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