This decision was finalized during the IMF Executive Board s meeting in Washington, reflecting the global financial community s confidence in Pakistan s economic strategies.

The EFF, a 37-month arrangement valued at $7 billion, was initially agreed upon in July 2024. This latest tranche brings the total disbursements under the program to about $2 billion. The funds are expected to bolster Pakistan s foreign exchange reserves and provide a cushion against external economic shocks.

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Finance Minister Muhammad Aurangzeb, during his recent visit to Washington, reaffirmed Pakistan s commitment to implementing essential reforms in key sectors. These reforms are aimed at enhancing fiscal discipline, improving governance, and promoting sustainable economic growth.

"Pakistan has an existing 30 billion yuan swap line already [....] From our perspective, getting to 40 billion would be a good place to move towards [...] we just put in that request," the minister said.

The IMF s World Economic Outlook report projects Pakistan s GDP growth for the next fiscal year (2025–26) to rise to 3.6%. Additionally, the inflation rate is expected to decrease to 5.1% in the current fiscal year, with a further decline to 7.7% in the following year.

In parallel, Pakistan has requested China to increase its currency swap line by 10 billion yuan (approximately $1.4 billion). This move is intended to further stabilize Pakistan s financial position and ensure liquidity in the face of global economic uncertainties.

This financial support from the IMF and the proactive measures by the Pakistani government underscore the nation s resilience and determination to navigate economic challenges. The international community s backing reflects a collective commitment to supporting Pakistan s path towards sustained economic stability and growth.