Web desk: Pakistan has received approval for its next tranche of around $1.3 billion from the International Monetary Fund (IMF).
This news comes at a time when the country continues to show improved economic performance.
The funds are part of the ongoing $7 billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
The IMF Executive Board met in Washington to review Pakistan’s economic progress and confirmed approval of over $1 billion under the EFF.
Additionally, over $200 million is under the RSF for climate-related initiatives.
With this approval, Pakistan’s total disbursements under both programs have reached $3.3 billion.
Previous tranches
Pakistan earlier received $1 billion in September 2024 and $1 billion in May 2025.
The IMF said Pakistan completed its second economic review successfully and met all required targets before the Board’s decision.
Economic improvements
The Ministry of Finance has also highlighted several positive developments in this regard.
These include Pakistan recording a current account surplus for the first time in 14 years.
Additionally, inflation has remained stable, as per the reports.
Foreign exchange reserves have also improved. This has also boosted investor confidence.
Officials said that reforms in governance, the energy sector, and climate policy have played a key role in building trust with the IMF.
Governance and reform measures
The government has taken several key steps to strengthen the economy and ensure sustainable development.
These include completing the Governance and Corruption Diagnosis Report.
It provides a comprehensive assessment of administrative and financial systems.
Reforms have also been carried out in the energy sector, focusing on reducing debt and improving overall management and efficiency.
In addition, climate-related policies have been integrated into national planning and development strategies.
After the devastating floods experienced last year, it has better prepared itself for future climate challenges.
The government has committed to continuing structural reforms and maintaining transparency as part of its long-term economic plan.
