Pakistan, IMF reach $1.2bn staff-level deal

Summary

• Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on the fourth review of the $7 billion Extended Fund Facility (EFF), paving the way for the release of around $1.2 billion in fresh financing.
• The IMF urged Pakistan to continue reforms aimed at improving public financial management, reducing debt-related risks and lowering government financing costs.
• Under the RSF, Pakistan is also continuing reforms focused on climate resilience, including climate-sensitive public investment, disaster risk financing, irrigation reforms, energy efficiency and transport decarbonisation.

AI Generated Summary

Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on the fourth review of the $7 billion Extended Fund Facility (EFF), paving the way for the release of around $1.2 billion in fresh financing.

The agreement, reached after discussions between IMF officials and Pakistani authorities, still requires approval from the IMF Executive Board. Once approved, Pakistan is expected to receive approximately $1 billion under the EFF and another $210 million through the Resilience and Sustainability Facility (RSF).

The latest disbursement would take total funding released to Pakistan under the two programmes to around $5.7 billion.

The IMF team, led by Iva Petrova, held talks with Pakistani officials from September 23 to October 7 as part of the fourth EFF review, third RSF review and the 2026 Article IV consultation.