The International Monetary Fund (IMF) has released a new loan tranche of $1.2 billion to Pakistan, which the State Bank of Pakistan has also confirmed receiving. According to officials, the amount includes $1 billion under the Extended Fund Facility (EFF) and $200 million for climate financing.
Earlier this week, the IMF Executive Board approved the disbursement of $1.2 billion for Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). With this latest release, the total disbursements under both programs have reached $3.3 billion.
According to the IMF, Pakistan has made significant progress in its reform program, which has helped maintain macroeconomic stability despite global economic challenges and the recent devastating floods. The primary surplus for fiscal year 2025 stood at 1.3%, meeting the target.
The IMF further stated that Pakistan’s foreign exchange reserves have increased to $14.5 billion. Although inflation rose, the Fund attributed the increase to temporary disruptions in food supply chains.
Following the Board meeting, IMF Deputy Managing Director Nigel Clarke said Pakistan’s economic reforms have played a major role in maintaining macroeconomic stability in difficult circumstances. He added that while economic indicators show improvement, Pakistan must continue with strong and consistent reforms to ensure sustainable, private sector–led growth.
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