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

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IMF has approved $1.32 billion for Pakistan after completing a programme review, according to Reuters and IMF statements. The funds come under EFF and RSF facilities, taking total support to $4.8 billion. Disbursement is tied to continued reforms on fiscal discipline and stability

International Monetary Fund (IMF) International Monetary Fund (IMF)

The International Monetary Fund (IMF) has approved the release of about $1.32 billion to Pakistan following the completion of a scheduled review under its ongoing lending programmes, according to a Reuters report and an IMF press statement.

The approval allows Pakistan to immediately draw funds under two separate IMF facilities around $1.1 billion under the Extended Fund Facility (EFF) and roughly $220 million under the Resilience and Sustainability Facility (RSF). The latest disbursement brings total IMF support under the current arrangements to about $4.8 billion within a broader $7 billion programme.

According to Reuters reporting on the IMF board decision, the release follows completion of programme reviews that assess Pakistan’s progress on economic reforms and policy commitments tied to the bailout package.

These reviews are a standard requirement under IMF lending frameworks and determine whether scheduled tranches are released.

IMF reiterates reform conditions for future disbursements

In its official communication published on its website, the IMF said the programme remains focused on restoring macroeconomic stability in Pakistan, strengthening fiscal discipline, and supporting structural reforms aimed at improving long-term economic resilience.

The Fund emphasised that continued implementation of agreed policy measures will be essential for sustaining financial support.

The IMF press release reiterated that Pakistan must maintain tight macroeconomic policies, including fiscal consolidation and monetary discipline, while advancing reforms in revenue mobilisation, energy sector efficiency, and public financial management. It said these steps are critical given persistent external pressures and global economic uncertainty.

Reuters reported that the disbursement is part of Pakistan’s ongoing engagement with the IMF under a multi-tranche bailout arrangement agreed earlier. The $7 billion programme has been central to Pakistan’s efforts to stabilise its economy, which has faced repeated balance-of-payments pressures, high inflation, and weak foreign exchange reserves.

The IMF has consistently stated that future disbursements will depend on Pakistan’s continued adherence to programme conditions and reform benchmarks, including tax base expansion, fiscal consolidation, and structural improvements in key sectors.

The latest approval underscores the continued reliance on IMF support as Pakistan works to maintain macroeconomic stability under tight global financial conditions.

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