IMF, Pakistan reach staff-level agreement over $1.2 billion loans

ISLAMABAD, Mar 28 (APP): The International Monetary Fund (IMF) and Pakistan have reached a staff-level agreement on the third review under Pakistan’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF) under which Pakistan would have access to around $1.2 billion.

“The IMF team has reached a staff-level agreement with the Pakistani authorities on the third review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the second review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF),” said IMF press statement received here Saturday.

“The staff-level agreement is subject to approval by the IMF Executive Board and upon approval, Pakistan will have access to about US$1.0 billion (SDR 760 million) under the EFF and about US$210 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about US$4.5 billion,” it added.

According to the statement, the program implementation under the EFF remained broadly aligned with the Pakistan government’s objectives to strengthen public finances; ensure inflation remains durably within the State Bank of Pakistan’s target range; advance reforms to improve the viability of the energy sector; and deepen structural reforms, while strengthening social protection and rebuilding health and education spending.

It said, Pakistan’s climate reform agenda, backed by the RSF, is progressing, and the government remain committed to implementing comprehensive reforms and policies that enhance resilience and reduce vulnerabilities to climate-related risks.

It is worth mentioning here that IMF team, led by Ms. Iva Petrova, held discussions on the third review under EFF and the second review under RSF in Karachi and Islamabad from February 25 to March 2, 2026, and virtually afterward.

“Supported by the EFF, ongoing policies have continued to strengthen the economy and rebuild market confidence. Following the recovery in FY25, economic activity gained further momentum in the first part of the current fiscal year. Inflation and the current account balance remained contained, and external buffers continued to strengthen,” Iva Petrova said according to the statement.

She said, the conflict in the Middle East, however, casts a cloud over the outlook as volatile energy prices and tighter global financial conditions risk putting upward pressure on inflation and weigh on growth and the current account.

Pakistani government remain committed to pursuing sound and prudent macroeconomic policies to preserve the recent gains in macro-financial stabilization, while deepening structural reforms to accelerate growth and strengthening social protection to mitigate the impact of volatile energy prices on the most vulnerable, the statement added.