The International Monetary Fund (IMF) has approved a combined loan package of $2 billion for Pakistan, disbursed across two separate financial facilities.
$1 billion will be released under the Extended Fund Facility, while an additional $210 million will flow through the Resilience and Sustainability Facility.
The IMF Executive Board granted its final approval after completing a formal review of the adherence of Pakistan to all required prior economic actions and conditions.
The Agreement
A staff-level agreement between Pakistan and the IMF was reached on March 27, forming the basis for the final disbursement decision from the board.
Under that agreement, Pakistan committed to maintaining fiscal discipline, advancing tax reforms, and carrying out a broader set of structural economic adjustments across key sectors.
Finance Minister Muhammad Aurangzeb confirmed that Pakistan had fulfilled every required precondition before the Executive Board convened to consider the formal loan tranche approval.
The approved funds are expected to directly strengthen the foreign exchange reserves, which have remained under pressure throughout the ongoing economic stabilisation programme.
The disbursement also supports the broader efforts of Pakistan to maintain macroeconomic stability and sustain the reform momentum agreed with the Fund under the extended arrangement.
