The International Monetary Fund (IMF) has approved the release of $1.32 billion in new funding for Pakistan under its ongoing financial support arrangements, aimed at strengthening the country’s economy amid continued domestic and global economic challenges.
The decision was made by the IMF Executive Board in Washington, which approved the disbursement under two separate programs: the Extended Fund Facility and the Resilience and Sustainability Facility.
According to the IMF, Pakistan will receive approximately $1.1 billion under the Extended Fund Facility, while around $220 million will be provided through the Resilience and Sustainability Facility, which is focused on supporting climate-related initiatives and improving disaster resilience.
With this latest tranche, total IMF financing for Pakistan under both programs has risen to approximately $4.8 billion.
The IMF stated that Pakistan’s implementation of key economic reforms has contributed to maintaining relative macroeconomic stability, improving financing conditions, and gradually restoring investor confidence, despite ongoing external pressures linked to global geopolitical uncertainty.
It also noted that Pakistan’s foreign exchange reserves increased to around $16 billion by the end of December, up from approximately $14.5 billion in June 2025.
However, the Fund cautioned that energy supply disruptions linked to regional instability have added pressure on the economy, particularly through higher fuel costs and reduced liquefied natural gas imports, which have contributed to electricity shortages and fiscal strain.
The IMF further emphasized the need for continued structural reforms, including strengthening public finances, improving the performance of state-owned enterprises, reforming the energy sector, and enhancing climate resilience and disaster response frameworks.
