The International Monetary Fund’s (IMF) Executive Board is set to meet today (Monday), withPakistan’s loan reviews expected to be taken up, potentially clearing the way for about $1.2 billion in fresh financing at a crucial moment for the economy.
Pakistan’s case is formally on the agenda for the IMF board meeting scheduled for December 8–14. The recent staff-level agreement with Islamabad under the Resilience and Sustainability Facility (RSF) and the Extended Fund Facility (EFF) will be evaluated by the Fund.
Pakistan might get $1 billion under the EFF and an additional $200 million as the first tranche of the RSF, which promotes climate-resilience activities, if the board approves the reviews. The final decision, however, rests on the board’s deliberations today.
Today’s meeting follows a staff-level agreement that was reached in October after extensive discussions in Karachi, Islamabad, and Washington between September 24 and October 8. Pakistan’s fiscal performance, monetary policy stance, ongoing structural reforms, and advancements on climate-related commitments were the main topics of discussion during the negotiations, which were headed by Iva Petrova, the chief of the IMF mission.
The IMF recognized Pakistan’s “strong progress” in reducing inflation, rebuilding external buffers, and fiscal consolidation in its previous review. Additionally, it gave credits to the State Bank of Pakistan (SBP) for upholding a strict monetary policy, which the Fund claimed has been essential in stabilizing inflation expectations.
The Fund highlighted its ongoing dedication to structural reforms, such as strengthening the viability of the energy sector, boosting competition, improving public service delivery, and strengthening the governance of state-owned enterprises.
The IMF also highlighted Pakistan’s efforts under the RSF to strengthen resilience against natural disasters, enhance the management of water resources, and update its climate information systems reforms that have become more urgent following the devastating floods that severely damaged crops, infrastructure and livelihoods.
Pakistan might get $1 billion under the EFF and an additional $200 million as the first tranche of the RSF, which promotes climate-resilience initiatives, if the board approves the reviews. The final decision, however, rests on the board’s deliberations today.
Ahead of the board meeting, officials confirmed that Pakistan had agreed to one of the IMF’s key conditions: a special audit of supplementary grants issued over the past decade. Islamabad has also accepted another requirement aimed at limiting the federal government’s discretionary power to issue such grants in the future.
Sources said the digital Public Finance Management Assessment was examined during the talks, alongside oversight mechanisms for the digitized PFM master plan.
If the Executive Board approves Pakistan’s reviews today, the disbursement could be made as early as tomorrow. Officials in Islamabad hope the inflow will strengthen external reserves, support the ongoing economic recovery and reinforce investor confidence in the government’s broader reform agenda.