IMF, Pakistan Reach Staff-Level Agreement; $1.2 Billion Funding Expected

Islamabad: The International Monetary Fund and Pakistan have reached a staff-level agreement, marking a significant step for the country’s economic stability.

According to the IMF, Pakistan will gain access to $1 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility, bringing the total to approximately $1.2 billion.

The funds will be disbursed after approval by the IMF Executive Board, increasing the total amount received by Pakistan to $4.5 billion.

The IMF noted improvements in Pakistan’s economy, stating that inflation and the current account deficit are under control, although risks remain due to Middle East tensions.

The statement highlighted the government’s commitment to reducing the fiscal deficit and implementing tax reforms, while expanding support through the Benazir Income Support Programme for vulnerable populations.

The State Bank of Pakistan is expected to maintain a tight monetary policy to control inflation, with the possibility of further interest rate increases if needed.

The IMF also emphasized the importance of expanding the tax base, controlling expenditures, reforming the energy sector, and privatizing state-owned enterprises, alongside climate-focused initiatives such as green transport and reducing carbon emissions.