Pakistan has received a $1.2 billion disbursement from the International Monetary Fund (IMF), with officials confirming that the amount has been transferred to the State Bank of Pakistan (SBP) following the Fund’s Executive Board approval earlier this week.
The release keeps Pakistan’s IMF programme fully on track as the country navigates economic stabilisation.
According to sources, the IMF has released:
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$1 billion under the Extended Fund Facility (EFF)
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$200 million under the Resilience and Sustainability Facility (RSF) for climate-related reforms
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The full amount has been credited to the SBP account
The Executive Board approved the funds on December 8, unlocking the latest tranche after clearing Pakistan’s loan review.
Reforms and stabilisation efforts appreciated
Earlier, the IMF confirmed the approval of Pakistan’s loan review, enabling the release of $1.2bn and reaffirming that the country’s reform progress remains satisfactory. The Fund noted that Pakistan has made “continued progress” in stabilising its economy, supported by:
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Easing inflation
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Improving foreign exchange reserves
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Strengthening investor sentiment
Prime Minister Shehbaz Sharif’s office welcomed the IMF’s decision, calling it a recognition of “effective reform implementation.” The statement added that Pakistan had avoided default, and the challenge now is to convert “hard-won stability into broader economic opportunity.”
Focus areas under IMF review
Economic reforms
The IMF highlighted key priorities moving forward:
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Strengthening public finances
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Restoring energy sector viability
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Accelerating productivity-boosting structural reforms
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Maintaining a tight monetary policy
Deputy Managing Director Nigel Clarke emphasised that Pakistan must sustain prudent policymaking to support medium-term, private-sector-led growth.
Climate financing & RSF conditions
Under the RSF, the IMF stressed urgent reforms, including:
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Improved water-use pricing
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Enhanced disaster-response coordination
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Greater disclosure of climate-related financial risks
As part of programme conditions, Pakistan is advancing its first large-scale privatisation in nearly two decades. PM Shehbaz recently announced that bidding for a majority stake in Pakistan International Airlines (PIA) is set for December 23, with four shortlisted groups cleared to participate.
