In September 2024, the fund had agreed to allocate $7 billion over 37 months via the Extended Fund Facility (EFF) and decided on an additional $1.4 billion under the Resilience and Sustainability Facility (RSF).
The IMF’s executive board approved approximately $1 billion for Pakistan under the EFF and roughly $210 million through the RSF.
So far, Pakistan has received a total of $4.5 billion in loans from the IMF out of two debt packages amounting to $8.4 billion.
The Express Tribune reported that the funds are expected to be disbursed early next week, which will increase the central bank’s reserves to over $17 billion.
However, the government has had to adhere to previous fiscal and monetary targets, committing to a stabilization strategy despite growing dissent regarding policies that have led to increased unemployment, poverty, and income inequality.
Approval from the IMF followed the government’s improved performance against fiscal and monetary goals, though varying opinions exist concerning the direction for the latter half of the fiscal year.
The IMF mission assessed Pakistan’s economic performance for the July-December 2025 period as part of the third review of the $7 billion bailout package.
Pakistan fulfilled all end-December 2025 quantitative performance criteria and exceeded targets concerning net international reserves, while successfully meeting the general government’s primary balance goal.
Furthermore, the government achieved six of the eight end-December 2025 indicative targets, although the Federal Board of Revenue fell short, missing targets for net tax revenues and income tax collections from retailers, which did not meet IMF expectations.
Nevertheless, the government committed to focusing on revenue administration reforms to reduce the shortfall by the fiscal year’s conclusion.
To mitigate the effects of revenue shortfalls on IMF targets, the government has raised petroleum levy rates.
Some progress has been made on structural reforms, with four structural benchmarks related to governance, social support, the gas sector’s sustainability, and special technology zones being met on time.
As part of the conditions attached to the $1.2 billion climate facility, the government implemented a green taxonomy and released guidelines for managing climate-related financial risks and for listed companies’ disclosure regarding climate-related risks and opportunities.
Finance Minister Muhammad Aurangzeb confirmed to the IMF that the country is dedicated to maintaining sound macroeconomic policies and pursuing structural and institutional reforms to achieve long-term sustainable and inclusive growth.
New assurances have also been provided to establish a foundation capable of withstanding shocks, including those stemming from the conflict in the Middle East.
Pakistan has assured the IMF of its commitment to adhere to the fiscal path agreed upon prior to the onset of the Middle East war and to achieve the Rs 3.4 trillion primary budget surplus target.
Additionally, another commitment states that the new budget will be developed in consultation with the IMF to ensure it is fiscally disciplined and that the government avoids pursuing aggressive economic growth, according to the report.
