ISLAMABAD (Kashmir English): The International Monetary Fund (IMF) will review Pakistan’s loan programs during a meeting of its Executive Board from December 8 to 14; the meeting will include the possibility of a $1.2-billion loan disbursement.
The proposed funding comprises $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility.
If approved, this will mark the third installment of Pakistan’s $7 billion EFF program, following $1 billion released in September 2024 and the second tranche in May 2025. The RSF program, with a focus on climate resilience and sustainability, will also release its first $200 million tranche soon.
The IMF highlighted areas of progress for Pakistan regarding fiscal consolidation, controlling inflation, and tight monetary policy. The structural reforms are ongoing for energy, state-owned enterprises, and public services, while initiatives for adaptation to climate change aim at enhancing disaster resilience and water management.
Ahead of the board meeting, the IMF’s Governance and Corruption Diagnostic Assessment highlighted the sustained challenges posed by corruption and recommended a 15-point reform agenda.
According to Finance Minister Muhammad Aurangzeb, the report was a catalyst for faster reforms, while he confirmed his government was committed to implementation.
