KARACHI: The International Monetary Fund (IMF) said on Tuesday it had reached a staff-level agreement with Pakistan for the second review of its 37-month Extended Fund Facility (EFF) and the first review of a 28-month Resilience and Sustainability Facility (RSF), a step that could unlock about $1.2 billion once approved by the Fund’s Executive Board.
Pakistan secured a $7 billion bailout from the IMF in September 2024 after months of negotiations to stabilize its struggling economy, rebuild reserves and attract foreign investment. The program, divided between the EFF for macroeconomic reforms and the RSF for climate resilience, came after record inflation and devastating floods pushed millions into poverty.
Since then, the IMF says implementation has remained strong, with fiscal and monetary tightening restoring a measure of stability. The current-account balance recorded a surplus for the first time in 14 years, inflation has eased and external buffers have improved.
“Supported by the EFF, Pakistan’s economic program is entrenching macroeconomic stability and rebuilding market confidence,” said Iva Petrova, who led the IMF mission.
“The recovery remains on track, with the FY25 current account recording a surplus — the first in 14 years — the fiscal primary balance surpassing the program target, inflation remaining contained, external buffers strengthening, and financial conditions improving.”
