IMF clears $1.32 billion for Pakistan after review, signals continued support under $7 billion reform programme

The International Monetary Fund (IMF) has approved the release of approximately $1.32 billion to Pakistan after completing a scheduled review under its ongoing lending programs. The disbursement includes $1.1 billion from the Extended Fund Facility (EFF) and $220 million from the Resilience and Sustainability Facility (RSF), bringing total IMF support to $4.8 billion under the broader $7 billion program. The approval follows assessments of Pakistan’s progress on economic reforms tied to the bailout package. The IMF emphasized that future disbursements depend on Pakistan maintaining tight macroeconomic policies, including fiscal consolidation and monetary discipline. Key reforms include expanding the tax base, improving energy sector efficiency, and strengthening public financial management. The IMF’s decision underscores Pakistan’s reliance on the fund to stabilize its economy amid persistent balance-of-payments pressures, high inflation, and weak foreign exchange reserves. The $7 billion program remains central to Pakistan’s efforts to restore macroeconomic stability under challenging global financial conditions. The IMF reiterated that continued implementation of agreed policy measures is essential for sustaining financial support. Future tranches will hinge on Pakistan’s adherence to reform benchmarks, including fiscal consolidation and structural improvements in critical sectors. This latest approval highlights the IMF’s role in supporting Pakistan’s economic resilience amid external pressures and global economic uncertainty.