The International Monetary Fund (IMF) has released $1.2 billion to Pakistan, confirmed by the State Bank of Pakistan.
Officials said $1 billion of the tranche was provided under the Extended Fund Facility (EFF), while $200 million came through climate financing. The IMF’s Executive Board approved the disbursement earlier this week under the EFF and the Resilience and Sustainability Facility (RSF).
According to the IMF, these payments have raised total disbursements under both programs to $3.3 billion. The fund praised Pakistan’s significant progress on reform measures, which helped maintain economic stability despite recent global challenges and devastating floods.
The IMF highlighted that Pakistan recorded a primary surplus of 1.3 percent in FY2025, in line with targets. Inflation rose temporarily due to disruptions in food supply, but the overall macroeconomic performance remained strong.
Foreign exchange reserves increased to $14.5 billion, showing a notable improvement over last year, with expectations for further growth in the next fiscal year.
IMF Deputy Managing Director Nigel Clarke said Pakistan’s reforms have been crucial in sustaining macroeconomic stability. He noted improvements in economic growth, lower inflation expectations, and reductions in fiscal and external deficits, while urging the country to continue cautious policies and accelerate reforms to ensure sustainable, private sector-led growth.
