Pakistan Secures IMF Staff-Level Agreement to Unlock USD 1.2 Billion Loan

The International Monetary Fund said on Tuesday that it has reached a staff-level agreement with Pakistan, paving the way for USD 1.2 billion in new funding, pending board approval. The deal includes USD 1 billion under the Extended Fund Facility and USD 200 million from the Resilience and Sustainability Facility, bringing total disbursements to about USD 3.3 billion. The IMF noted that Pakistan’s recovery remains on track, with contained inflation, stronger external buffers, and improved financial conditions, as evidenced by narrowing sovereign spreads. The country has pledged to maintain a tight, data-driven monetary policy and boost climate resilience after recent floods. Meanwhile, Finance Minister Aurangzeb said Pakistan plans to return to global capital markets, beginning with a yuan-denominated green bond before year-end, followed by at least a USD 1 billion international bond.