Pakistan, IMF Reach Staff-Level Agreement for $1.21 Billion
The IMF team and Pakistani authorities began negotiations on September 29 and concluded the talks on October 7
Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement following the latest economic review negotiations, paving the way for the release of $1.21 billion, subject to approval by the IMF Executive Board.
The IMF team and Pakistani authorities began negotiations on September 29 and concluded the talks on October 7, paving the way for a staff-level agreement following discussions on Pakistan’s economic performance, fiscal targets, and ongoing reform commitments.
According to a statement issued by the IMF, the agreement follows the fourth review under Pakistan’s Extended Fund Facility (EFF) programme, linked to its fifth tranche, and the third review under the Resilience and Sustainability Facility (RSF), which supports climate-related reforms.
The IMF said Pakistan had made strong efforts to achieve its economic targets, noting that the ongoing programme had contributed to macroeconomic stability and accelerated structural reforms.
Under the agreement, Pakistan is expected to receive $1.21 billion following approval by the IMF Executive Board, including $200 million under the climate financing programme.
The Fund acknowledged that Pakistan’s economic performance had remained resilient despite challenging external conditions. It also appreciated the government’s handling of the oil crisis, highlighting measures taken to manage its economic impact.
According to the IMF statement, Pakistan’s GDP growth reached 4 percent during the first half of the fiscal year, compared with 3.6 percent recorded last year.
The IMF further noted that inflation was declining and moving back towards the State Bank of Pakistan’s target range, reflecting improvements in macroeconomic conditions.
Pakistan has also assured the IMF that it will increase budgetary allocations for education and healthcare as part of its broader economic reform commitments.
The Fund expects Pakistan’s primary fiscal surplus to reach 2 percent of GDP, while discussions under Article IV consultations have also been successfully concluded.
Meanwhile, Pakistani government sources said the country was fully implementing the IMF programme and accelerating its privatisation agenda.
Official sources added that efforts were underway to reduce financial losses at electricity distribution companies and prevent further accumulation of circular debt in the gas sector.
The staff-level agreement marks another significant development in Pakistan’s ongoing economic stabilisation programme, with the next step being formal approval by the IMF Executive Board for the release of funds.