In a significant financial relief effort, the International Monetary Fund (IMF) has approved the disbursement of a vital tranche of $1.29 billion for Pakistan. This injection of funds is expected to arrive within the next two days, providing a much-needed boost to the country’s foreign exchange reserves.
The amount, approved during a meeting in Washington, is strategically split: $1.09 billion falls under the main Extended Fund Facility (EFF) program, while a crucial $200 million portion is allocated under the Resilience and Sustainability Facility (RSF) to address projects related to climate change resilience. This latest disbursement brings the total amount released to Pakistan across both loan programs to $3.3 billion.
The IMF’s approval follows confirmation that Pakistan has successfully met all pre-agreed conditionalities, including the release of the comprehensive Corruption and Governance Diagnostic Report. The IMF representative praised the pace of Pakistan’s economic stabilization as “encouraging” and noted the strong implementation of the ongoing reform program.
Addressing the National Assembly, Finance Minister Muhammad Aurangzeb clarified the government’s commitment to the structural reforms outlined in the recent report. He confirmed that the report, which highlights certain structural deficiencies, was prepared by the government itself. He urged Parliament members to study the 15 recommendations within the report, assuring that an official action plan based on these guidelines would be delivered before the end of December.
