IMF releases $1.2 billion tranche to Pakistan
Pakistan
Of the total, $1 billion has been disbursed under the EFF program, while an additional $200 million was released under the RSF) for climate financing.
ISLAMABAD (Dunya News) - The International Monetary Fund (IMF) has released a $1.2 billion tranche for Pakistan, the State Bank of Pakistan (SBP) confirmed.
Of the total, $1 billion has been disbursed under the Extended Fund Facility (EFF) program, while an additional $200 million was released under the Resilience and Sustainability Facility (RSF) for climate financing.
The IMF’s Executive Board approved the tranche on Monday, bringing total disbursements under these programs to $3.3 billion. These funds are part of the $8.4 billion loan arrangements designed to support Pakistan’s economic reform agenda.
The IMF highlighted Pakistan’s progress in implementing key reforms under the EFF, maintaining macroeconomic stability despite global challenges and the recent devastating floods. The country recorded a primary surplus of 1.3% for FY2025, in line with targets, while inflationary pressures were described as temporary due to food supply disruptions.
Foreign exchange reserves have strengthened to $14.5 billion, reflecting significant improvement from the previous year, with further growth expected in the upcoming fiscal year.
IMF Deputy Managing Director Nigel Clarke praised Pakistan’s reform efforts, noting improvements in economic growth, reduced fiscal and external deficits, and controlled inflation expectations. He urged the country to accelerate reforms and maintain cautious policies to ensure sustainable, private-sector-led growth.
To secure the board’s approval, Pakistan fulfilled two prior actions: issuing a guarantee to restructure an undercapitalized bank and publishing the Governance and Corruption Diagnostic Assessment report.
The $1.1 billion represents the third tranche under the $7 billion economic stabilization package, with the IMF granting waivers on some conditions for the end-June review and relaxing at least three requirements for the next review.
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Meanwhile, workers’ remittances to Pakistan continued their positive growth trajectory, recording an inflow of $3.2 billion during November 2025.
This represents a 9.4 percent increase compared to the same month last year, underscoring the continued strong support from overseas Pakistanis.
Cumulatively, during the first five months of the fiscal year (July-November FY26), total remittances amounted to $16.1 billion, marking an increase of 9.3 percent compared to the $14.8 billion received during the same period last year.
The majority of the remittances in November 2025 came from key sources including Saudi Arabia, which contributed $753.0 million, followed by the United Arab Emirates S$675.0 million), the United Kingdom $481.1 million), and the United States of America $277.1 million).
