ISLAMABAD: In a major development on the economic front, Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews.
According to an IMF statement, Pakistan will receive $1.2 billion following approval by the Fund’s Executive Board. The IMF noted that Pakistan’s IMF-supported economic reform program continues to make steady progress toward macroeconomic stability and restoring market confidence.
The statement highlighted that for the first time in 14 years, Pakistan’s current account recorded a surplus in fiscal year 2025, while fiscal consolidation efforts exceeded program targets. Inflation has moderated, and foreign exchange reserves have improved. The Fund projected Pakistan’s economic growth between 3.25% and 3.5% for the fiscal year.
The IMF also praised Pakistan’s climate resilience and reform efforts, acknowledging the severe impact of recent floods that affected millions, caused over a thousand deaths, and inflicted widespread damage to crops and housing. It emphasized the need for continued implementation of comprehensive climate and structural reforms to mitigate future risks.
The Fund further acknowledged the government’s commitment to advancing reforms in the energy sector, improving fiscal discipline, and pursuing structural adjustments for long-term stability.
Earlier, Finance Minister Senator Muhammad Aurangzeb said that Pakistan’s talks with the IMF mission had been “constructive and forward-looking.” In an interview with an international news agency, he revealed that Pakistan plans to issue its first Green Panda Bond before the end of this year.
The minister also confirmed progress on the privatization of Pakistan International Airlines (PIA) and three power distribution companies, noting that five investor groups have expressed interest in acquiring the national carrier. He added that the resumption of flights to Europe and the UK has further enhanced PIA’s investment appeal.