The International Monetary Fund (IMF) has scheduled Pakistan’s case for review on December 8 during its upcoming Executive Board meetings. The Board is expected to approve a total of $1.2 billion in financial support for the country.
This funding includes a $1 billion disbursement under Pakistan’s ongoing 37-month loan program. In addition, the first tranche of $200 million under the Resilience and Sustainability Facility (RSF) may also be released. The RSF is designed to support climate resilience initiatives in Pakistan.
On October 15, Pakistan and the IMF reached a staff-level agreement on the additional $1.2 billion. The IMF noted that Pakistan successfully met the required economic targets, satisfying the mission that remained in the country from September 24 to October 8. Discussions continued even after the mission’s departure, resulting in a positive outcome.
“Pakistan achieved a 1.6% primary surplus despite the impact of floods and ongoing tax reforms,” the IMF reported. The government has prepared an action plan to address any potential tax shortfalls. Federal and provincial authorities will jointly allocate funds to support flood relief efforts.
The IMF also recognized Pakistan’s progress in the social sector. Allocations under the Benazir Income Support Programme (BISP) have increased to support poverty reduction. Timely interventions in education and public health were implemented at both federal and provincial levels.
Approval of this funding from the IMF is expected to strengthen Pakistan’s fiscal stability, support ongoing economic reforms, and provide resources for climate resilience and social programs. The disbursement will help Pakistan manage economic challenges while continuing structural reforms in line with IMF recommendations.
This development marks a key step in Pakistan’s engagement with the IMF. It highlights the country’s commitment to achieving economic targets, implementing reforms, and addressing both natural and fiscal challenges through effective policy measures.
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The $1.2 billion funding is seen as a significant boost to Pakistan’s economy and a reinforcement of its partnership with the IMF.
