Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement that paves the way for the release of $1.2 billion in funding under the country’s ongoing loan programme.
According to the IMF, the agreement, now subject to final approval by the IMF’s executive board, would provide Pakistan with $1 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility, bringing total disbursements under the current programme to $4.5 billion.
The IMF emphasised that the release of funds is contingent on continued implementation of agreed economic policies, including maintaining a tight and data-driven monetary stance to anchor inflation expectations and strengthen external financial buffers.
In response, the State Bank of Pakistan has held its benchmark policy rate steady at 10.5%, citing concerns over rising global energy prices and regional tensions that could fuel inflationary pressures in the import-dependent economy.
Officials described the agreement as a critical step toward stabilising Pakistan’s economy, supporting foreign exchange reserves, and maintaining confidence in the country’s reform agenda. The tranche is expected to help cushion external financing pressures and support ongoing budgetary needs.