Of the total financing, $1.09 billion comes from Pakistan’s ongoing assistance program, with $200 million earmarked for climate change initiatives
By Amjad Qaimkhani
WASHINGTON: The International Monetary Fund (IMF) approved a $1.29 billion disbursement for Pakistan, officials confirmed, marking a significant boost to the country’s foreign exchange reserves and a further demonstration of confidence in Islamabad’s economic management.
Of the total, $1.09 billion was allocated under Pakistan’s ongoing assistance program, while $200 million was designated for projects addressing climate change. Sources indicated that the funds were expected to reach Pakistan within a day or two of the approval. This latest tranche followed two previous instalments under the IMF program, both of which had been received earlier this year.
The third tranche had been pre-approved by the IMF mission, with Pakistan fulfilling all prior conditions, including the submission of a comprehensive corruption and governance diagnostic report ahead of the board meeting. Analysts noted that the timely fulfilment of these requirements reflected Pakistan’s intent to adhere to the program’s structural and fiscal mandates.
Under the broader $7 billion Extended Fund Facility (EFF) program, Pakistan is scheduled to receive over $1 billion, while the $1.3 billion Rapid Financing Instrument (RFI) tranche includes more than $200 million in its first disbursement. Combined, these ongoing IMF loan programs will channel approximately $3.3 billion into the country, providing a crucial cushion for foreign exchange reserves, balance-of-payments support, and continued fiscal stability.
The IMF has publicly praised Pakistan’s efforts in implementing the terms of its programs, highlighting progress on structural reforms and governance measures, though it noted that certain areas required further attention. Government officials have reiterated their commitment to pursuing economic reforms, framing the IMF approval as both a validation of past steps and a prompt to maintain momentum.
Speaking in the National Assembly, Federal Finance Minister Muhammad Aurangzeb emphasized that the IMF report, already presented in the Senate, contained 15 specific recommendations for Pakistan’s reform agenda. He told lawmakers that the government would prepare an action plan in response to these recommendations before the end of December. “Parliamentarians should read this report carefully,” he said.
The infusion of funds is expected to provide breathing space for the government’s fiscal management, support climate-related initiatives, and reassure investors of Pakistan’s commitment to stabilizing its economy in a challenging regional and global environment.
