Pakistan Reaches $1.2 Billion IMF Staff-Level Agreement to Stabilize Economy

ISLAMABAD:
Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement that will unlock a $1.2 billion disbursement to help the country stabilize its struggling economy.

According to the IMF statement, the deal includes $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF). The IMF praised Pakistan’s fiscal discipline, saying inflation and the fiscal deficit have improved since July.

Finance Minister Muhammad Aurangzeb said that the agreement would “restore investor confidence and strengthen the rupee.” Pakistan plans to issue an international bond worth $1 billion early next year, followed by a green yuan-denominated bond to attract Chinese investors.

Analysts say this agreement signals improved trust between Islamabad and the IMF, though challenges remain due to inflationary pressures and slow exports.