Staff-Level Pact Reached Between IMF and Pakistan for $1.2 Billion Release

Reuters | October 15, 2025 | 08:28 AM IST | Breaking News, Pakistan News, World | Follow on Google News

Staff-Level Pact Reached Between IMF and Pakistan for $1.2 Billion Release

The International Monetary Fund said on Tuesday it has reached a staff-level agreement with Pakistan on its loan program, which would allow the country to access $1.2 billion after approval from the fund’s board.

The IMF will provide Pakistan $1 billion under its Extended Fund Facility and $200 million under its Resilience and Sustainability Facility, bringing total disbursements under the two arrangements to about $3.3 billion.

Countries under IMF lending programs need to pass regular reviews, which, once signed off by the fund’s executive board, trigger loan tranche payments.

“Supported by the EFF, Pakistan’s economic program is entrenching macroeconomic stability and rebuilding market confidence,” the fund said in a statement.

The IMF said the South Asian nation’s recovery remains on track, with inflation remaining contained, external buffers strengthening, and financial conditions improving as sovereign spreads narrowed significantly.

Pakistan has also pledged to maintain an appropriately tight and data-dependent monetary policy and strengthen climate resilience in the wake of recent devastating floods.

Pakistan’s finance minister, Muhammad Aurangzeb, had said earlier on Tuesday the country was set to sign a preliminary deal with the IMF, after an IMF team left Pakistan last week without sealing agreements.

In an interview, Aurangzeb said the government now plans to return to capital markets, starting with its first green bond denominated in Chinese yuan before the end of the year, followed by at least a $1 billion international bond.

The IMF’s support in September 2024 helped shore up Pakistan’s $370 billion economy following a severe economic crisis that sent its currency tumbling.

Reuters