WASHINGTON – The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan authorities, paving the way for the release of $1.2 billion in financial support under ongoing reform programmes.
IMF, Pakistan reach staff-level agreement on $1.2 billion disbursement https://t.co/Ftz6Yjrdnx https://t.co/Ftz6Yjrdnx
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According to the IMF, the agreement follows the third review of Pakistan’s 37-month Extended Fund Facility (EFF) and the second review under the 28-month Resilience and Sustainability Facility (RSF). The deal is subject to approval by the IMF Executive Board.
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Once approved, Pakistan will gain access to approximately $1.0 billion under the EFF and about $210 million through the RSF. This would bring total disbursements under both arrangements to nearly $4.5 billion, providing critical support to the country’s external financing needs.
The development comes after an IMF delegation, led by Iva Petrova, held detailed discussions with Pakistani officials in Karachi and Islamabad between February 25 and March 2, 2026, followed by virtual engagements.
In an official statement, Petrova noted that reforms supported under the programme have contributed to stabilising Pakistan’s economy and restoring investor confidence. She highlighted that economic activity gained momentum following a recovery in FY25, with inflation and the current account remaining relatively contained.
However, the IMF cautioned that external risks persist, particularly due to ongoing geopolitical tensions involving the Middle East. Volatile global energy prices and tightening financial conditions could put renewed pressure on inflation, growth, and Pakistan’s external balance.
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The statement reaffirmed Pakistan’s commitment to prudent macroeconomic policies and structural reforms aimed at sustaining economic stability. Authorities have also pledged to strengthen social protection measures to shield vulnerable segments of society from the impact of rising energy costs.
The agreement marks another step in Pakistan’s ongoing efforts to stabilise its economy under IMF-backed reforms.