IMF Clears Preliminary $1.2 Billion Package for Pakistan
The IMF has reached a staff-level agreement with Pakistan for around $1.2 billion in fresh funding, subject to approval by its Executive Board.
The International Monetary Fund has reached a staff-level agreement with Pakistan that could unlock around $1.2 billion in additional funding, offering fresh support to the country’s economic stabilisation efforts.
The proposed package includes approximately $1 billion under the IMF’s 37-month Extended Fund Facility and another $210 million through its Resilience and Sustainability Facility, which supports efforts to address longer-term challenges including climate-related risks.
The agreement follows the latest review of Pakistan’s economic programme and still requires approval from the IMF Executive Board. If cleared, total disbursements under the two programmes would rise to around $5.7 billion.
According to the IMF, Pakistan has maintained relative macroeconomic stability despite external pressures, including the impact of the West Asia conflict and higher energy costs. The country’s economy grew by an estimated 3.6 per cent in FY26, while real GDP growth reached 4 per cent during the first three quarters.
Inflation, which peaked at 10.3 per cent in May, eased by September, while the current account remained broadly balanced, supported by strong remittances. Foreign exchange reserves also climbed to around $21 billion by the end of September.
However, the IMF warned that significant risks remain. Geopolitical tensions, volatile energy prices, tighter global financial conditions and potential trade disruptions could put renewed pressure on Pakistan’s economy.
The latest agreement therefore provides some financial breathing room, but the final release of funds still depends on the IMF board’s approval.
