IMF Approves $1.29B Tranche for Pakistan: Critical Climate Funding

The International Monetary Fund (IMF) has officially greenlighted a significant financial injection for Pakistan. On December 8, 2025, the IMF Executive Board in Washington approved a loan instalment of $1.29 billion.

This approval follows the successful completion of the second economic review. The IMF mission had previously authorised the release of these funds, and the Executive Board has now stamped its final approval.

This latest tranche targets two key areas:

• Economic Stability
• Climate Resilience

Specifically, Pakistan will receive over $1 billion under the $7 billion Extended Fund Facility (EFF) program. Furthermore, the board approved the first instalment under the Resilience and Sustainability Facility (RSF). This portion includes over $200 million dedicated exclusively to projects combating climate change. This marks a significant step under the $1.3 billion RSF initiative.

With this latest approval, the total funds released to Pakistan under both loan programs now stand at $3.3 billion. Reportedly, Pakistan has already received two prior instalments under the 37-month EFF program, which the country secured in September 2024. The first instalment of $1 billion arrived in September 2024, followed by a second $1 billion tranche in May 2025.

The IMF has termed the implementation of the current loan program as strong. In response, the government has assured the international lender that it will continue implementing necessary economic reforms.

Ultimately, this inflow of $1.29 billion will directly strengthen Pakistan’s foreign exchange reserves.