ISLAMABAD: Pakistan is set to receive a major infusion of $1.2 billion from the International Monetary Fund (IMF), as the Fund’s Executive Board prepares to approve the tranche on December 8, with funds expected to hit the country’s account the following day. The disbursement comes at a critical juncture, providing much-needed support for the nation’s fragile external financing position and signalling international confidence in Pakistan’s economic management.
The tranche is part of a dual programme under the Staff-Level Agreement (SLA) signed on October 14, which includes the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience & Sustainability Fund (RSF). Out of the upcoming release, roughly $1 billion will come from the EFF and $200 million from the RSF. Once credited, total inflows under these agreements will reach approximately $3.3 billion, helping stabilise reserves and meet pressing fiscal obligations.
A key precondition for the IMF Board’s approval is the publication of the long-awaited Governance & Corruption Diagnostic (GCD) Assessment Report, which had been delayed multiple times. Islamabad has assured the Fund that the report will be released ahead of the December session, clearing the final hurdle for disbursement.
While the IMF has praised Pakistan’s macroeconomic performance — including a current-account surplus for FY25, a primary fiscal balance exceeding programme targets, controlled inflation, and stronger external buffers — it has also warned that the recent devastating floods, which affected nearly seven million people, could weigh on growth. GDP for FY25 is projected at 3.25–3.5 percent, reflecting both resilience and challenges.
Officials say the funds are expected to provide a critical lifeline for Pakistan, easing pressure on the balance of payments and enabling the government to continue essential development and social programmes. At the same time, the IMF stresses the need for ongoing structural reforms, including stronger governance, transparency, and fiscal discipline, to ensure long-term stability and sustained investor confidence.
This story has been reported by PakTribune. All rights reserved.