Islamabad (Web Desk): The Executive Board of the International Monetary Fund (IMF) has cleared fresh financial assistance worth $1.32 billion for Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) programmes.
In a statement issued late Friday night, the IMF announced that its Executive Board had successfully completed the third review of Pakistan’s EFF programme along with the second review under the RSF arrangement.
Following the approval, Pakistan will now receive nearly $1.1 billion through the EFF programme and an additional $220 million under the RSF facility.
With the latest release, the overall disbursement under both programmes has climbed to nearly $4.8 billion.
The IMF said Pakistan’s continued commitment to economic reforms, despite pressures linked to the conflict in the Middle East, has helped the country preserve financial stability while also improving external and financing conditions.
It added that uncertainties caused by the regional conflict reinforced the need for Pakistan to stay focused on prudent economic management and continue structural reforms aimed at achieving lasting economic progress.
According to the statement, the government’s economic priorities remain focused on preserving macroeconomic stability and pushing ahead with reforms to strengthen public finances, improve productivity and competitiveness, upgrade the social protection framework and human capital, overhaul state-owned enterprises, and improve the efficiency of public services and the energy sector.
The IMF noted that fiscal indicators remained encouraging, with Pakistan expected to record a primary surplus of 1.6 percent of GDP during fiscal year 2026, matching programme targets. However, inflation has risen due to the impact of higher international commodity prices on domestic energy costs.
Pakistan’s foreign exchange reserves increased to $16 billion by the end of December, compared to $14.5 billion recorded at the end of June 2025, and the IMF expects reserves to continue improving over the next year as well as in the medium term.
It is worth mentioning that Pakistan’s 37-month EFF programme received approval on September 25, 2024, with the objective of strengthening economic resilience and supporting sustainable growth.
Meanwhile, the 28-month RSF arrangement, approved on May 9, 2025, is intended to help the country tackle climate-related challenges, reduce exposure to natural disasters, and enhance long-term economic resilience.
The IMF further stressed that Pakistan’s major reform agenda includes maintaining economic stability through disciplined macroeconomic policies, rebuilding foreign exchange buffers, widening the tax net, improving competition and productivity, restructuring state-owned enterprises, strengthening public services, increasing spending on health, education, and social welfare, restoring the energy sector’s sustainability, and intensifying efforts against corruption.