IMF Approves $1.2 Billion Loan For Pakistan
The International Monetary Fund has approved $1.2 billion for Pakistan under two ongoing financing arrangements, giving Islamabad fresh support as it tries to stabilise its economy, rebuild reserves and continue reforms linked to earlier bailout commitments.
IMF Clears $1.2 Billion For Pakistan
The IMF executive board approved about $1 billion under the Extended Fund Facility and around $210 million under the Resilience and Sustainability Facility. The funding is part of Pakistan’s larger IMF-backed debt packages aimed at supporting economic stability.
Pakistan Reserves Expected To Rise
The fresh disbursement is expected to help strengthen Pakistan’s foreign exchange reserves. Reports indicate that the funds could take the country’s central bank reserves above $17 billion after release, giving Islamabad more room to manage external payments.
IMF Notes Revenue Target Shortfall
Pakistan met most of the IMF’s key fiscal and monetary targets for the July-December 2025 review period. However, tax collection remained a concern, with the Federal Board of Revenue missing targets related to net tax revenue and income tax from retailers.
Pakistan Commits To Fiscal Discipline
The government has assured the IMF that it will continue with stabilisation policies, revenue reforms and a tight fiscal path. Pakistan has also committed to preparing its next budget in consultation with the IMF while maintaining its primary budget surplus target.
