IMF, Pakistan Reach $1.2B Deal Pending Approval
The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement to unlock $1.2 billion in funding. The package includes $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF). Final disbursement depends on approval by the IMF Executive Board.
Economic Signals and Commitments
The IMF noted that Pakistan’s economy shows early signs of stabilization. Inflation levels have eased, foreign exchange reserves have improved, and investor sentiment has strengthened. Islamabad has pledged to pursue a cautious monetary policy, strengthen fiscal management, and integrate climate resilience measures into its economic reforms.
Pakistan’s Plan Forward
Finance Minister Muhammad Aurangzeb welcomed the deal, describing it as a critical step in restoring market confidence. He said Pakistan plans to re-enter global capital markets, beginning with a green bond in Chinese yuan, followed by a $1 billion international bond. These measures are intended to support long-term growth and financial recovery.
