ISLAMABAD: The International Monetary Fund has approved a $1.2 billion loan tranche for Pakistan, providing a significant boost to the country’s external financing position.
According to the Ministry of Finance, the funds will be disbursed under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). Following the approval, Pakistan will receive $1 billion under the EFF programme, along with an additional $210 million through the RSF.
Officials stated that the approval follows a staff-level agreement reached between Pakistan and the IMF on March 27. Under the agreement, Pakistan committed to implementing key economic measures, including fiscal discipline, tax reforms, and broader structural adjustments.
The IMF Executive Board granted final approval after reviewing Pakistan’s compliance with these prior actions, paving the way for the disbursement.
Finance Minister Muhammad Aurangzeb had earlier said that Pakistan had fulfilled all required preconditions, and the successful completion of the staff-level agreement cleared the path for the loan tranche approval.
The development is expected to strengthen Pakistan’s foreign exchange reserves and support ongoing economic stabilisation efforts.
