Islamabad (HRNW)– The International Monetary Fund (IMF) has released a tranche of $1.2 billion to Pakistan, which has been confirmed by the State Bank of Pakistan. According to officials, the country has received $1.2 billion, including $1 billion under the Extended Fund Facility (EFF) and $200 million in climate financing.
The IMF Executive Board approved the disbursement on Monday, stating that the funds will be provided under the EFF and the Resilience and Sustainability Facility (RSF). With this approval, total disbursements to Pakistan under both programs have now reached $3.3 billion.
The IMF noted that Pakistan has made significant progress in reform measures under the EFF, helping maintain economic stability despite global challenges and the impact of devastating floods. Fiscal performance remained strong, with a primary surplus of 1.3 percent recorded in FY2025, in line with targets.
Although inflation rose due to disruptions in food supplies, the IMF described this increase as temporary. Foreign exchange reserves improved significantly, rising to $14.5 billion, and are expected to increase further in the coming fiscal year.
Following the Executive Board meeting, Deputy Managing Director Nigel Clark stated that Pakistan’s reforms have played a key role in maintaining macroeconomic stability. He added that improvement in growth, declining inflation expectations, and reductions in fiscal and external deficits are positive signs. However, he emphasized that Pakistan must further accelerate reforms with prudent policies to ensure sustainable, private sector–led growth amid global uncertainties.
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