ISLAMABAD: The IMF Executive Board will meet on December 8 to approve $1.2 billion in financing for Pakistan. The approval would release $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility.
The decision follows a staff-level agreement reached in October after detailed discussions in Karachi, Islamabad and Washington. Talks focused on Pakistan’s fiscal performance, monetary policy, structural reforms and climate commitments. The IMF noted progress in inflation control, fiscal consolidation and improvements in external reserves.
However, the Fund cautioned that flood-related damage and external pressures continue to pose risks. It stressed the need for tight monetary policy, strong energy-sector reforms and improved public-service delivery.
Ahead of the meeting, the IMF published a governance diagnostic report highlighting systemic weaknesses and corruption risks. Opposition parties criticised the findings, but Finance Minister Muhammad Aurangzeb described the report as a catalyst for long-delayed reforms.
If approved, the disbursement could reach Pakistan as early as December 9.
According to the finance minister, Pakistan government has fulfilled key requirements of the International Monetary Fund ahead of the board’s meeting to clear way for the disbursement of the next tranche.
