Pakistan Receives $1.2 Billion IMF Tranche, Boosting Foreign Reserves

Islamabad — Pakistan has received a $1.2 billion tranche from the International Monetary Fund (IMF), a development expected to strengthen the country’s foreign exchange reserves. The State Bank of Pakistan and the Ministry of Finance confirmed that the amount has been deposited into the central bank’s Account No. 1.

According to finance ministry officials, the IMF approved the $1.2 billion disbursement on December 8, after which the funds were transferred today.

Out of the total amount, $1 billion has been released as the third tranche under the ongoing loan program, while $200 million has been allocated for climate resilience and related initiatives.

The State Bank stated that the receipt of the tranche will help improve Pakistan’s foreign exchange reserves, ease external financing pressures, and support ongoing economic stabilization efforts.

In its latest review, the IMF described Pakistan’s economic reforms as satisfactory, noting progress in reducing inflation, improving reserves, and boosting investor confidence.

Prime Minister Shehbaz Sharif’s office welcomed the IMF decision, calling it a recognition of the government’s commitment to economic reforms.

The government said Pakistan has moved out of the danger zone of default, but emphasized the need to convert economic stability into sustainable growth for long-term prosperity.