IMF Reaches Staff-Level Agreement with Pakistan for $1.2 Billion Funding
The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan. The deal covers the second review of the 37-month Extended Fund Facility (EFF) and the first review of the 28-month Resilience and Sustainability Facility (RSF).
The agreement awaits approval from the IMF Executive Board. Once approved, Pakistan will receive about $1 billion under the EFF and $200 million under the RSF.
An IMF team led by Iva Petrova held meetings with Pakistani officials in Karachi, Islamabad, and Washington D.C. The discussions focused on Pakistan’s reform progress, fiscal performance, and economic outlook.
Economic Outlook and Government Commitment
Iva Petrova said Pakistan’s economic program continues to strengthen stability and rebuild market confidence. She explained that the recovery remains steady.
The Financial Year 2025 current account shows a surplus for the first time in 14 years. The fiscal primary balance has exceeded program goals. Inflation has stayed contained, and external reserves are improving.
Petrova also noted that financial conditions have improved significantly. Sovereign spreads have narrowed, and investor sentiment is turning positive.
She confirmed that Pakistani authorities remain fully committed to both IMF-supported programs. They aim to maintain sound, prudent macroeconomic policies while pushing forward with structural reforms.
This IMF Pakistan staff-level agreement signals growing confidence in the country’s economy. With continued reforms and international support, Pakistan aims to sustain stability and long-term growth.
