IMF deal unlocks $1.2bn for Pakistan
Pakistan and the International Monetary Fund have reached a staff-level agreement that could release about $1.21 billion, offering fresh support to the country's reform-dependent economy.
What the deal covers
The agreement follows talks in Karachi and Islamabad from September 23 to October 7, led by IMF mission chief Iva Petrova.
It completes the fourth review of the 37-month Extended Fund Facility and the third review of the Resilience and Sustainability Facility, alongside the 2026 Article IV consultation.
Once the IMF Executive Board approves, Pakistan will receive about $1 billion under the first programme and about $210 million under the second, lifting total disbursements to roughly $5.7 billion.
Economy shows resilience
Petrova said the authorities had navigated the impact of the Middle East conflict and preserved macroeconomic stability.
The fund noted growth of 4 percent in the first three quarters of fiscal year 2026, with full-year growth estimated at 3.6 percent.
Inflation eased to about 10.3 percent in September after peaking in May, and sovereign rating upgrades have restored some market access.
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Challenges remain
The money is conditional and board approval is still required. The IMF urged the State Bank of Pakistan to keep a tight policy stance until inflation returns durably to target.
A Dawn editorial argued that the government has yet to show the economy is growing fast enough to cut poverty and lift exports, while a World Bank assessment says Pakistan accounts for 48 percent of the extreme poor in the Middle East region.
