ISLAMABAD: The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan following extensive discussions on the country’s economic reform programme. The agreement could unlock approximately $1.21 billion in financial support, subject to approval by the IMF Executive Board.
The deal covers the fourth review of Pakistan’s 37-month Extended Fund Facility (EFF) and the third review of the 28-month Resilience and Sustainability Facility (RSF). If approved, Pakistan will receive around $1 billion under the EFF and another $210 million through the RSF.
The latest disbursement would raise total funds released under both programmes to approximately $5.7 billion. An IMF delegation led by Iva Petrova held discussions with Pakistani authorities in Karachi and Islamabad from September 23 to October 7.
The Fund said Pakistan maintained macroeconomic stability despite higher energy prices and supply disruptions linked to regional geopolitical tensions. Pakistan’s economy recorded 4% growth during the first three quarters of fiscal year 2026, while full-year growth is estimated at 3.6%.
The IMF also noted that inflation eased to around 10.3% in September after reaching its peak in May. Meanwhile, foreign exchange reserves climbed to nearly $21.5 billion by the end of September.
However, the Fund urged Pakistan to maintain fiscal discipline and pursue structural reforms. It called for stronger revenue collection, improved public financial management, energy-sector reforms and measures to reduce circular debt.
The IMF also stressed the need for a simpler tax system, improved governance, privatisation and stronger anti-corruption measures. The agreement now awaits formal approval from the IMF Executive Board before the funds can be released.
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