Pakistan Receives $1.2bn IMF Tranche After Executive Board Approval

Pakistan has received a fresh $1.2 billion disbursement from the International Monetary Fund (IMF). Officials confirmed that the full amount has been transferred to the State Bank of Pakistan (SBP) after the IMF Executive Board approved the release earlier this week.

This marks another major step in keeping Pakistan’s IMF programme on track as the country works to stabilise its economy.

Breakdown of the Disbursement

According to official sources, the IMF released two components under different programmes:

• $1 billion under the Extended Fund Facility (EFF)

• $200 million under the Resilience and Sustainability Facility (RSF), focused on climate reforms

All funds have been credited to Pakistan’s central bank account.

The approval came after the IMF reviewed Pakistan’s reform progress and cleared the loan review on December 8.

IMF Praises Pakistan’s Progress

Earlier, the IMF confirmed that Pakistan is moving in the right direction. The Fund said the country has shown “continued progress” in economic stabilisation, supported by:

• Lower inflation

• Better foreign exchange reserves

• Improved investor confidence

Prime Minister Shehbaz Sharif welcomed the IMF decision. His office said the approval reflects Pakistan’s “effective reform implementation.” The PM noted that the country successfully avoided default, and the next challenge is turning “hard-won stability into broader economic growth.”

Key Focus Areas Under IMF Review

The IMF highlighted several priorities Pakistan must maintain:

Economic Reforms

• Improve public finances

• Fix the energy sector and reduce losses

• Speed up structural reforms to increase productivity

• Maintain a tight monetary policy to control inflation

IMF Deputy Managing Director Nigel Clarke said Pakistan should continue responsible policies to support long-term, private-sector-led growth.

Climate Financing Under RSF

For the $200 million RSF support, the IMF stressed the need for:

• Better water-use pricing

• Stronger disaster-response systems

• Increased transparency on climate-related financial risks

Pakistan is also working on major privatisation plans—the first in almost two decades. PM Shehbaz recently confirmed that PIA’s majority-stake bidding will take place on December 23, with four shortlisted groups already cleared.