A staff-level agreement with the IMF could give Pakistan access to $1.21 billion after approval by the Fund’s Executive Board. The funding would be split between its main lending programme and a climate-focused facility.
Under the agreement, about $1 billion could be disbursed through the Extended Fund Facility and another $210 million through the Resilience and Sustainability Facility. The total disbursements under both programmes could then reach about $5.7 billion.
The agreement covers reviews of the existing lending programmes. It still requires approval by the IMF’s Executive Board, so the funds have not yet been released.
Pakistan relies on external financing to support its foreign exchange reserves and meet debt repayments. The IMF said its previous programme had helped preserve macroeconomic stability, but warned of risks from regional tensions, volatile energy prices, tighter global financial conditions and trade disruptions.