IMF Approves $1.2 Billion Loan Program for Pakistan | What It Means for the Economy. Pakistan received a major financial boost as the International Monetary Fund (IMF) approved the country’s second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF). With this new approval, Pakistan is set to receive $1.2 billion, offering relief at a time when economic stability is a key national priority.
Pakistan Secures Fresh IMF Disbursement
The approval gives Pakistan access to:
- $1.09 billion under the 37-month EFF
- $200 million under the 28-month RSF
With this disbursement, Pakistan’s total received amount under both programs has now reached $3.3 billion, according to the state broadcaster.
Why This Approval Matters
This IMF decision comes at a crucial time. Pakistan has been struggling with:
- High inflation
- Low foreign exchange reserves
- Fiscal pressure
- External repayment obligations
Fresh inflows from IMF not only support the country’s balance of payments but also improve investor confidence. It signals that Pakistan is meeting reform targets and is committed to economic stability.
Extended Fund Facility (EFF): What It Covers
The EFF is designed to help countries facing long-term structural and balance-of-payments challenges. For Pakistan, the program focuses on:
- Revenue generation
- Energy sector reforms
- Strengthening governance
- Controlling fiscal deficits
The latest review shows Pakistan has achieved several agreed targets, unlocking the next tranche.
Resilience and Sustainability Facility (RSF): Focus on Long-Term Growth
The RSF supports climate resilience and sustainability reforms. Under this program, Pakistan aims to:
- Improve climate adaptation policies
- Modernize infrastructure
- Enhance disaster response mechanisms
- Strengthen environmental governance
This $200 million installment is part of Pakistan’s broader climate and economic resilience strategy.
Economic Impact: What Happens Next?
The IMF’s approval is expected to:
- Stabilize the rupee
- Ease pressure on foreign reserves
- Support government reforms
- Encourage global lenders and investors
- Strengthen Pakistan’s position in international markets
Economists believe this decision will help Pakistan manage short-term challenges while pushing forward long-term reforms.
Government’s Reaction
Officials welcomed the decision, saying the fresh support will help Pakistan maintain economic discipline and continue structural improvements. The government also highlighted its commitment to meeting IMF conditions and restoring macroeconomic stability.
Conclusion
The IMF’s $1.2 billion approval gives Pakistan a timely financial cushion and reinforces confidence in ongoing reforms. With total disbursements reaching $3.3 billion, the program supports stabilization efforts and strengthens the country’s long-term economic and climate resilience strategies.
