Islamabad: Pakistan and the International Monetary Fund have reached a staff-level agreement on the economic review, paving the way for a total of $1.21 billion in new financial assistance for Pakistan.
According to a statement issued by the IMF, discussions on the fourth review of the Extended Fund Facility (EFF) for Pakistan have been completed. After the agreement, the matter will be presented to the IMF Executive Board for final approval.
According to the statement, if approved, Pakistan will be provided with about $1 billion under the EFF and $210 million under the Resilience and Sustainability Facility (RSF). Thus, the total amount under both the programs is $1.21 billion.
The IMF, while appreciating the efforts made by Pakistan to achieve its economic goals, said that the measures under the program have improved economic stability and advanced the reform process.
The statement said that Pakistan’s economic growth rate was 4 percent from July 2025 to March 2026. However, the impact of the crisis in the Middle East has led to a growth rate of around 3.6 percent. Inflation also reached its highest level in May 2026, while remittances from overseas Pakistanis played a significant role in limiting pressure on the current account.
The IMF has also taken a clear stance on the issue of petroleum subsidies. The organization has emphasized the gradual elimination of the subsidy scheme and avoiding its expansion in the future. According to the statement, any assistance needs to be limited to the deserving.
Energy sector reforms have also been declared an important part of the program. The IMF has emphasized effective measures to improve collections, pay off the dues of energy companies and reduce production costs. Increasing collections and reducing losses in the gas sector have also been declared necessary.
Now the release of $1.21 billion will depend on the approval of the IMF Executive Board, while energy reforms, subsidy policy and fiscal discipline will remain important priorities for Pakistan in the next phase.
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