IMF Approves $1.2 Billion Disbursement For Pakistan
The International Monetary Fund has approved a new disbursement of $1.2 billion for Pakistan. The approval followed the second review of Pakistan’s Extended Fund Facility and the first review under the Resilience and Sustainability Facility. The package includes $1 billion under the EFF programme and $200 million under the RSF window.
Support for balance of payments
Officials said the funds will help Pakistan strengthen its foreign exchange reserves and support balance of payments. The country has faced pressure due to inflation, currency weakness and the impact of natural disasters on the economy. The IMF noted improvements in stabilisation measures, including steps to reduce deficits and improve liquidity.
Continued reform is required
The announcement comes with conditions. Future releases will depend on continued progress in reforms. The IMF wants Islamabad to maintain fiscal discipline, improve governance, and proceed with structural changes in state-owned enterprises. The fund has highlighted these steps as crucial for long-term growth.
Confidence from international partners
The new tranche is seen as a sign of confidence from lenders in Pakistan’s reform process. Authorities say the funding will help the economy stay on track, while preparations continue for privatisation and climate resilience initiatives.
