Pakistan is preparing for an important moment as the IMF Board meets on December 8 to review the country’s request for fresh support. The discussion will focus on Pakistan IMF funding under two major programmes. These include the Extended Fund Facility and the Resilience and Sustainability Facility. The meeting could play a crucial role in shaping the country’s economic outlook.
Pakistan reached a staff level agreement with the IMF in October. The talks took place in Karachi, Islamabad, and Washington. As a result, the agreement now awaits approval from the Executive Board. This step is essential because the IMF can only release funds after the Board completes its formal review.
The expected approval could unlock around $1.2 billion. This includes nearly $1 billion under the EFF and another $200 million through the RSF. The fresh inflow would help the country strengthen confidence and stabilise reserves.
Reforms and Climate Resilience
IMF Deputy Managing Director Bo Li recently appreciated Pakistan’s reform efforts. He said the country is moving “on the right path of reform and resilience.” His comments came during discussions with the Finance Division. In addition, he highlighted that the RSF will provide $1.3 billion to support climate resilience and strengthen fiscal and financial systems.
According to earlier IMF assessments, Pakistan has made progress in key economic areas. For example, the Fund pointed to better fiscal consolidation and falling inflation. It also noted improvements in external buffers. However, it urged caution. Climate related losses and global uncertainty still pose major risks. Therefore, the IMF stressed the need for strict and data driven monetary policy.
The upcoming meeting follows the release of the IMF’s Governance and Corruption Diagnostic Assessment. This review was a mandatory requirement for the Board’s approval. The report flagged governance gaps and suggested that Pakistan could boost growth by up to 6.5% within five years by adopting a 15 point reform plan.
The findings sparked calls for accountability. Leaders from the opposition and Khyber Pakhtunkhwa raised concerns about alleged misuse of public resources. They asked for clarity on how funds were managed and why money reportedly moved abroad.
Finance Minister Muhammad Aurangzeb welcomed the diagnosis. He said the report should speed up overdue reforms. He also noted that the government has already started working on several recommendations.
If the IMF Board approves the package on Monday, Pakistan may receive the $1.2 billion as early as the next day. As a result, the funds would strengthen external buffers and support the broader reform agenda.
IMF Board Meets to Approve Pakistan’s $1.2bn Funding Request
