Pakistan has received a loan of more than one billion dollars from the IMF.
Pauper Pakistan has got another lifeline from the International Monetary Fund (IMF). The IMF approved US $ 1.2 billion for Pakistan under two separate ongoing financing arrangements. The Fund had agreed to provide US$7 billion over a period of 37 months under the Extended Fund Facility (EFF) in September 2024, while it had decided to provide US$1.4 billion under the Resilience and Sustainability Facility (RSF). The Executive Board of the IMF agreed to provide Pakistan approximately US $ 1 billion under the EFF and approximately US $ 210 million under the RSF. Pakistan has so far received a loan of US $ 4.5 billion from the IMF against two loan packages totaling US $ 8.4 billion.
Forex reserve will increase
'The Express Tribune' newspaper reported that this amount will be released early next week, which will increase the Central Bank's reserves to more than 17 billion US dollars. However, the government had to stick to the old fiscal and monetary targets and promised to remain on the path of stabilization, even though there were strong voices against these policies because these policies had increased unemployment, poverty and income inequality. The IMF approval came after the government demonstrated better performance against fiscal and monetary targets, but there were differing views on the path to take during the second half of this financial year.
The IMF mission had reviewed the performance of Pakistan's economy for the period July–December 2025, which included the third review of the US$7 billion bailout package. Pakistan met all quantitative performance benchmarks by end-December 2025 and outperformed the net international reserve floor, comfortably achieving the government's primary balance target.
Pakistan assured IMF
The government also met six out of eight indicative targets by the end of December 2025, but the Federal Board of Revenue (FBR) remained the weakest link. It missed the targets of net tax revenue collected by the Federal Board of Revenue and income tax revenue from retail sellers, which fell short of the IMF targets. However, the government assured the IMF that it would remain focused on implementing revenue administration reforms to reduce the shortfall by the end of the financial year.
To mitigate the impact of revenue shortfall on IMF targets, the government has increased petroleum levy rates. The government also made some progress on structural reform and met the four structural targets on time in the areas of governance, social assistance, gas sector sustainability and special tech sectors. As part of the conditions under the US$1.2 billion climate facility, the government adopted a 'green taxonomy' and issued guidelines on the management of climate-related financial risks and disclosure of climate-related risks and opportunities by listed companies.
Statement of Finance Minister of Pakistan
Finance Minister Muhammad Aurangzeb assured the IMF that the country is committed to continuing sound and prudent macroeconomic policies and structural and institutional reforms to take Pakistan on the path of long-term, sustainable and inclusive development. The new assurances have also been given to lay a foundation to withstand shocks, including the impact of the Middle East war.
Pakistan has now assured the IMF that it will not abandon the fiscal path agreed before the start of the Middle East war and will meet the target of primary budget surplus of Rs 3.4 trillion. According to the report, as part of another commitment, the new budget will be prepared in consultation with the IMF to ensure that it is a fiscally tight budget and that the government does not chase high economic growth.
-
Why Chennai’s Nehru Stadium Was the Perfect Venue for Vijay’s Swearing-In as Tamil Nadu Chief Minister
-
From PM Modi To Kamal Hassan Wishes Pour In As TVK's Vijay Sworn In As Tamil Nadu CM
-
Who is S Keerthana? TVK’s First Woman MLA From Sivakasi Whose Fluent Speech In Hindi Sparks Buzz
-
UP Education Minister Targets ‘Rain, Rain Go Away,’ Claiming Popular Rhyme Promotes Selfishness Over Traditions
-
UP Cabinet Expansion Likely Today; BJP Eyes Social Balance Ahead Of 2027 Polls
