IMF Staff Agreement with Pakistan Could Release $1.2 Billion

The IMF said it reached a staff-level agreement with Pakistan on reviews of its lending programs, potentially unlocking about $1.21 billion if the board approves. Pakistan could receive roughly $1 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility. The IMF noted that Pakistan has maintained macroeconomic stability but still faces risks from geopolitical tensions and volatile energy prices.

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The IMF announced a staff-level understanding with Pakistan covering assessments of certain loan facilities. Board approval would make roughly $1.21 billion available: about $1 billion through the Extended Fund Facility and $210 million through the Resilience and Sustainability Facility. Combined disbursements under both programs would then reach approximately $5.7 billion.

Pakistan depends on outside funding to strengthen reserves and service debt. The IMF credited authorities with managing Middle East conflict effects and maintaining macroeconomic stability through strong policies, but warned that geopolitical tensions, energy price swings, tighter global finance and trade disruptions keep risks high. An S&P Global Market Intelligence economist previously described Pakistan as the Asia-Pacific economy most exposed to a prolonged Middle East conflict because of Gulf energy, remittances and regional financing.

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