ISLAMABAD: The IMF has reached a preliminary agreement with Pakistan that could release about USD 1.2 billion in new funding to the country.
The money includes USD 1 billion under the IMF's main loan programme and another USD 210 million under a separate programme aimed at helping Pakistan become more resilient to climate and other long-term risks.
The announcement of the staff-level agreement reached after extensive talks between the International Monetary Fund (IMF) team, led by Iva Petrova, and Pakistani authorities was made by the global money lender in a statement from its headquarters in Washington.
A staff-level agreement is a provisional understanding reached between a member country’s government and an IMF negotiating team.
The agreement, which is subject to approval by the IMF Executive Board, would give Pakistan additional financing and bring total disbursements under the two programmes to about USD 5.7 billion.
According to a statement issued by the delegation head, the IMF team reached the agreement with the Pakistani authorities on the fourth review of the 37-month Extended Fund Facility (EFF) and the third review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF).
“Upon approval, Pakistan will have access to about USD 1.0 billion (SDR 760 million) under the EFF and about USD 210 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about USD 5.7 billion,” Petrova said.
She further said that supported by the EFF, Pakistan successfully navigated the impact of the West Asia conflict, and strong policies have helped preserve macroeconomic stability.
Real GDP growth reached four per cent in the first three quarters of FY26, and although higher energy prices and supply disruptions weakened the momentum somewhat, FY26 growth is estimated at 3.6 per cent.
“Headline inflation, after peaking in May, moderated to about 10.3 per cent in September, while core inflation remained contained,” she noted.
The current account was broadly balanced in FY26 supported by strong remittances, and gross reserves rose to about USD 21 billion by end-September while Sovereign rating upgrades and renewed international market access also point to stronger policy credibility.
She also said that risks remain high, particularly from geopolitical tensions, volatile energy prices, tighter global financial conditions, and trade disruptions.