Pakistan and the International Monetary Fund have reached a staff-level agreement for the disbursement of about $1.2 billion under two ongoing financial arrangements, the IMF said on Saturday.
The agreement follows the successful completion of the third review of the Extended Fund Facility and the second review under the Resilience and Sustainability Facility.
Talks between IMF officials and Pakistani authorities were held in Karachi and Islamabad from February 25 to March 2, but initially ended without a deal. Discussions later continued virtually, leading to the agreement.
According to the IMF, the understanding covers the 37-month Extended Fund Facility programme and the 28-month Resilience and Sustainability Facility arrangement. Pakistan’s Ministry of Finance also confirmed the development in a statement on X.
IMF mission chief Iva Petrova said that, subject to approval by the IMF’s executive board, Pakistan would gain access to about $1.0 billion under the Extended Fund Facility and around $210 million under the Resilience and Sustainability Facility.
She added that Pakistani authorities have reaffirmed their commitment to maintaining prudent macroeconomic policies to preserve recent gains in economic stabilisation. The programme also emphasises advancing structural reforms to support growth and strengthening social protection to cushion vulnerable populations from volatile energy prices.
Pakistan joined the IMF’s $7 billion Extended Fund Facility programme in 2024, aimed at stabilising the economy, rebuilding market confidence, sustaining fiscal reforms, and addressing inefficiencies in the energy sector.
In addition, the country secured a $1.4 billion Resilience and Sustainability Facility last year, focused on climate resilience, disaster management, water efficiency, and green financing initiatives.