Pakistan received a major lift on Tuesday after the International Monetary Fund cleared a $1.2 billion disbursement under two loan programmes. The approval came after the IMF’s executive board completed separate reviews of Pakistan’s main bailout facility and a climate-focused programme.
The new release brings Pakistan’s total IMF support to $3.3 billion since last year. Islamabad will continue to receive instalments over 37 months as long as it meets reform commitments. Prime Minister Shehbaz Sharif welcomed the decision and said it reflected the government’s strong push for economic reform and digitalisation. He noted that Pakistan avoided default last year and is now working to move from stability to long-term growth.
Sharif also credited Army Chief Gen. Asim Munir and Finance Minister Muhammad Aurangzeb for backing tough policy changes. IMF officials highlighted progress in fiscal discipline, rising foreign reserves of $14.5 billion, and improving growth indicators. They expect inflation to ease after flood-driven food price spikes.
IMF Deputy Managing Director Nigel Clarke urged Pakistan to maintain tight monetary policy, keep the exchange rate flexible, and advance long-delayed energy sector reforms. The climate facility will support better disaster planning, water management, and climate-related financial reporting.
