ISLAMABAD: The IMF Executive Board completed the second review under the Extended Fund Facility (EFF) in its meeting held on 08 Dec 2025, and approved the disbursement of SDR 760 million ($1.2 billion) for Pakistan.
Furthermore, the IMF Executive Board has also approved the disbursement of the first tranche of SDR 154 million under the Resilience and Sustainability Facility (RSF).
Accordingly, SBP has received SDR 914 million (equivalent to about US$1.2 billion) under the EFF and
RSF in value the 10 Dec 2025 from the IMF. The amount would be reflected in SBP’s foreign exchange reserves for the week ending on 12 Dec 2025.
IMF praises fiscal performance
Earlier, the International Monetary Fund praised the fiscal performance of Pakistan in the ongoing fiscal year. The board of the IMF appreciated Pakistan’s economic progress and fiscal stability.
IMF Reviews Mark Progress in Economic Stability
Pakistan’s 37-month EFF began on September 25, 2024. The program aims to strengthen economic resilience and support sustainable growth. It focuses on macroeconomic stability, reserve building, and tax base expansion. It also seeks stronger competition, higher productivity, and improved public services. The government is also reforming state-owned enterprises and restoring the energy sector’s viability.
Pakistan has made steady progress under the EFF. Fiscal performance remained strong during FY25. The government achieved a primary surplus of 1.3 percent of GDP. Inflation increased following heavy floods, but officials expect the rise to be temporary. Gross reserves reached $14.5 billion by the end of FY25. Reserves had stood at $9.4 billion one year earlier. The IMF expects reserves to rise further in FY26.
RSF Supports Climate Resilience
The IMF approved Pakistan’s 28-month RSF in May 2025. The program supports policy efforts to reduce climate vulnerabilities. It aims to improve disaster resilience and strengthen public investment processes. It also promotes efficient water use and stronger federal-provincial coordination during emergencies. Moreover, it focuses on climate risk disclosure by banks and corporates. The RSF also helps Pakistan pursue mitigation goals and reduce macro-critical climate risks.
IMF Deputy Managing Director Nigel Clarke praised Pakistan’s reform progress. He noted that policy implementation preserved stability during major shocks. He urged Pakistan to maintain prudent policies to secure durable growth. He also stressed the importance of tax reforms, tight monetary policy and deeper financial markets. Clarke said Pakistan must advance energy reforms to address inefficiencies and reduce costs.
Clarke said that better governance, SOE oversight and improved economic performance are essential for overall growth in Pakistan.
