IMF reaches staff-level agreement with Pakistan, paving way for $1.21 billion disbursement

Pakistan has reached a staff-level understanding with the International Monetary Fund that covers a fourth assessment under the Extended Fund Facility, along with a third assessment under the Resilience and Sustainability Facility, according to Profit by Pakistan Today. The arrangement would unlock roughly $1.21 billion in financing once the IMF Executive Board gives its approval. Of that sum, about $1 billion (SDR 760 million) would come through the EFF, while $210 million (SDR 154 million) would flow via the RSF.

Talks took place in Karachi and Islamabad between September 23 and October 7, with mission chief Iva Petrova leading the discussions. The Fund described implementation of the EFF as broadly on track despite a difficult external setting, and credited the authorities with absorbing the effects of the Middle East conflict. GDP expanded by 4% in the opening three quarters of FY26, although costlier energy and supply breaks later slowed momentum, leaving the full-year estimate at 3.6%.

Inflation eased to about 10.3% in September after peaking in May, while foreign exchange reserves rose to around $21.5 billion by the end of the month. Petrova warned that risks remain high, citing geopolitical tensions, volatile energy prices, a tighter global financing climate and trade disruption. The statement also pointed to rating upgrades and renewed market access as signs of stronger policy credibility.