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IMF, Pakistan Reach Staff-Level Agreement on $1.2 Billion Disbursement
The $1.2 billion agreement supports Pakistan’s macro-financial stability, structural reforms, and social protection, with total disbursements reaching about $4.5 billion, IMF said.
- On Saturday, the International Monetary Fund and Pakistan reached a staff-level agreement for about $1.2 billion, concluding the third review of the Extended Fund Facility and the second review of the Resilience and Sustainability Facility .
- Negotiations between IMF officials and Pakistani authorities occurred in Karachi and Islamabad from February 25 to March 2, followed by virtual discussions regarding the 37-month EFF and 28-month RSF arrangements.
- Pakistan will gain access to about $1.0 billion under the EFF and about $210 million under the RSF, bringing total disbursements to about $4.5 billion upon IMF Executive Board approval, with authorities targeting a 1.6 percent primary surplus for the FY26 budget.
- To protect vulnerable households, the government will strengthen the Benazir Income Support Program through inflation-adjusted cash transfers and improved payment systems, while ensuring energy sector viability through timely tariff adjustments that enable cost recovery.
- Despite progress, the IMF warned that the conflict in the Middle East casts a cloud over the outlook, as volatile energy prices and tighter global financial conditions risk putting upward pressure on inflation while weighing on Pakistan's current account.
20 Articles
20 Articles
Pakistan Gets Initial IMF Approval for $1.2 Billion of Loans
(Bloomberg) — Pakistan reached an initial agreement with the International Monetary Fund to unlock about $1.2 billion from a $7 billion bailout program, as geopolitical risks from the conflict in the Middle East threaten to upend its economic recovery.
Pakistan to get $1.2 billion as IMF, Islamabad reach staff-level agreement after month-long review
The agreement requires the approval of IMF's board, following which Pakistan can access $1 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility.
IMF, Pakistan reach staff-level agreement unlocking $1.2bn tranche
ISLAMABAD: The International Monetary Fund (IMF) on Saturday announced that it had reached a staff level agreement (SLA) for disbursement of about $1.2 billion on successful conclusion on the third review under Pakistan’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). The Fund tacitly endorsed Islamabad’s fuel pricing policy in the wake of Middle East crisis. It said program implementat…
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