The International Monetary Fund’s (IMF) Executive Board will review Pakistan’s loan programme tomorrow (December 8).
The meeting is expected to unlock around $1.2 billion in new financing at a crucial time for the country’s struggling economy.
Clearance would unlock about $1.2 billion, roughly $1 billion under the Extended Fund Facility (EFF) and $200 million through the Resilience and Sustainability Facility (RSF).
If approved on Monday, the $1.2 billion disbursement could be released as early as the next day, supporting Pakistan’s external buffers and broader reform agenda.
The 10-day technical discussions between Pakistan and the IMF have now concluded. Officials also confirmed that Pakistan has agreed to another IMF requirement aimed at limiting the federal government’s discretionary authority to issue supplementary grants.
The IMF’s technical mission arrived in Pakistan on November 11 to review progress on budget-related targets. The talks focused on reforms in Public Finance Management (PFM) and measures to enhance transparency in the budget process.
The board meeting follows a staff-level agreement reached in October after extensive talks in Karachi, Islamabad and Washington from September 24 to October 8. While the staff mission signed off on Pakistan’s progress, the disbursement still hinges on formal board approval.
Separately, IMF Deputy Managing Director Bo Li praised Pakistan’s reform trajectory, calling the country “on the right path of reform and resilience,” the Finance Division said.
He noted that, alongside the $7 billion stabilisation programme, the RSF would provide $1.3 billion to strengthen Pakistan’s fiscal and financial resilience to climate risks.
