Pakistan secures staff-level agreement for $1.2 billion IMF payout

Pakistan has reached a staff-level agreement (SLA) with theInternational Monetary Fund (IMF) to unlock about $1.2 billion under its ongoing bailout programme, subject to approval by the IMF’s Executive Board.

The agreement follows the successful conclusion of the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), the IMF said in a statement.

Under the deal, Pakistan will gain access to around $1 billion through the EFF and about $210 million under the RSF. The latest tranche would take total disbursements under the two arrangements to roughly $4.5 billion.

The IMF noted that Pakistan’s inflation and current account balance have remained contained, while external buffers have continued to strengthen. It added that authorities remain committed to prudent macroeconomic policies, structural reforms and strengthening social protection.

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Pakistan joined the $7 billion EFF programme in 2024 to stabilise its economy, rebuild investor confidence and address inefficiencies in the energy sector. The RSF, approved last year, focuses on climate resilience, disaster management and green financing initiatives.

The agreement comes amid rising geopolitical risks and external pressures that could impact the country’s economic recovery.

(With Agency Inputs)