The International Monetary Fund’s (IMF) Executive Board will meet on December 8 to approve $1.2 billion in loans to Pakistan.

The IMF confirmed that its Executive Board will convene from December 8 to 14, with Pakistan’s loan programs on the agenda. The board will review the staff-level agreement reached in October after extensive negotiations in Karachi, Islamabad, and Washington.

If approved, the disbursement would include roughly $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF).

Background on Pakistan’s loan programs

Pakistan is set to receive the third tranche of its $7 billion EFF program. Earlier installments included $1 billion in September 2024 and the second tranche in May 2025. The RSF program provides an additional $1.3 billion, with the first $200 million tranche also expected to be released soon.

The IMF’s approval is contingent on the board’s review, which focuses on fiscal performance, monetary policy, structural reforms, and climate-related commitments.

IMF highlights Pakistan’s reform progress

The IMF has acknowledged Pakistan’s progress in several areas, including fiscal consolidation, reducing inflation, and maintaining tight monetary policy by the State Bank of Pakistan (SBP). Structural reforms—especially in state-owned enterprises, the energy sector, competition, and public-service delivery—have shown continued commitment.

Under the RSF, climate-related reforms such as improved disaster resilience, water-resource management, and climate information systems have been prioritized, especially after recent floods that caused widespread agricultural and infrastructural damage.

Governance and corruption assessment

Ahead of the meeting, the IMF released its Governance and Corruption Diagnostic Assessment (GCDA), highlighting persistent corruption challenges and recommending a 15-point reform agenda. The report estimates that implementing these governance reforms could increase Pakistan’s economic growth to 5–6.5% over five years.

Finance Minister Muhammad Aurangzeb described the report as a “catalyst for accelerating long-overdue reforms” and affirmed the government’s commitment to implementing its recommendations.