The International Monetary Fund (IMF) has approved the release of a new tranche of funds for Pakistan following a successful review of the country’s Extended Fund Facility (EFF) programme, providing a significant boost to the country’s economic stabilization efforts.
The Tranche
The IMF Executive Board approved the disbursement of approximately USD 1.1 billion following the successful completion of the third review under the EFF arrangement. This brings total disbursements under the current programme to over USD 4 billion.
What Was Reviewed
IMF staff assessed Pakistan’s performance against agreed benchmarks including fiscal targets, foreign exchange reforms, energy sector adjustments and structural reform milestones. Pakistan met all quantitative performance criteria.
IMF Statement
The IMF noted Pakistan’s strong policy implementation and commitment to reforms, while also highlighting remaining vulnerabilities including high public debt and the need to continue energy sector reforms.
Market Reaction
Financial markets reacted positively to the news, with the Pakistani rupee strengthening against the US dollar and stock market indices recording gains in early trading following the announcement.
