ISLAMABAD: The International Monetary Fund (IMF) and Pakistan have finalized a staff-level agreement under the country’s ongoing loan programme, bringing Islamabad closer to securing about $1.2 billion in fresh financial support.
According to the IMF, the agreementpending approval from its Executive Board will unlock approximately $1 billion under the Extended Fund Facility (EFF) and an additional $210 million through the Resilience and Sustainability Facility (RSF). This would raise total disbursements under the programme to roughly $4.5 billion.
The development comes as part of the third review of the EFF and the second review of the RSF arrangements.
The Washington-based lender noted that Pakistan’s economic policies have helped stabilize the economy, curb inflation, and restore investor confidence following last year’s recovery.
However, the IMF has urged authorities to maintain a tight and data-driven monetary policy to keep inflation in check and strengthen external financial buffers. The State Bank of Pakistan recently kept its benchmark interest rate unchanged at 10.5%, citing risks from rising global energy prices and ongoing regional tensions.
In its assessment, the Fund acknowledged improvements in key indicators, including controlled inflation, a stable current account balance, and stronger foreign reserves. At the same time, it warned that instability in the Middle East could pose fresh economic challenges, particularly through volatile oil prices and tighter global financial conditions.
Pakistani officials have reaffirmed their commitment to prudent economic management, structural reforms, and social protection measures to sustain stability and promote growth. The programme also emphasizes reforms in energy, governance, and state-owned enterprises, alongside efforts to enhance climate resilience.
The Finance Ministry confirmed the agreement, describing it as a positive step toward maintaining macroeconomic stability and ensuring continued support from international partners.
