IMF releases $1.2bn tranche to Pakistan

Pakistan has received a $1.2 billion disbursement from the International Monetary Fund (IMF), with officials confirming that the amount has been transferred to the State Bank of Pakistan (SBP) following the Fund’s Executive Board approval earlier this week.

The release keeps Pakistan’s IMF programme fully on track as the country navigates economic stabilisation.

According to sources, the IMF has released:

$1 billion under the Extended Fund Facility (EFF)
$200 million under the Resilience and Sustainability Facility (RSF) for climate-related reforms
The full amount has been credited to the SBP account

The Executive Board approved the funds on December 8, unlocking the latest tranche after clearing Pakistan’s loan review.

Reforms and stabilisation efforts appreciated

Earlier, the IMF confirmed the approval of Pakistan’s loan review, enabling the release of $1.2bn and reaffirming that the country’s reform progress remains satisfactory. The Fund noted that Pakistan has made “continued progress” in stabilising its economy, supported by:

Easing inflation
Improving foreign exchange reserves
Strengthening investor sentiment

Prime Minister Shehbaz Sharif’s office welcomed the IMF’s decision, calling it a recognition of “effective reform implementation.” The statement added that Pakistan had avoided default, and the challenge now is to convert “hard-won stability into broader economic opportunity.”