Islamabad, 15 October (H.S.): Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement for a $1.2 billion disbursement, a significant step toward stabilizing the nation’s economy. The deal, which is pending approval from the IMF’s executive board, will provide crucial funding and signals growing confidence in the country’s financial management.
The impending payout consists of $1 billion under the Extended Fund Facility (EFF) and an additional $200 million from the Resilience and Sustainability Facility, bringing the total disbursements under the arrangements to approximately $3.3 billion.
In a statement, the IMF affirmed that Pakistan’s economic program is entrenching macroeconomic stability and rebuilding market confidence. The Fund noted that the nation’s recovery remains on track, with inflation contained, external buffers strengthening, and financial conditions improving.
Finance Minister Muhammad Aurangzeb confirmed the agreement and revealed the government’s plans to re-enter international capital markets. He announced an initiative to launch Pakistan’s first-ever green bond denominated in Chinese yuan before the end of the year, which will be followed by an international bond issue of at least $1 billion.
This agreement builds on the IMF’s critical support provided in September 2024, which was instrumental in shoring up Pakistan’s $370 billion economy following a severe crisis. Under the terms of the new understanding, Pakistan has pledged to maintain a tight, data-dependent monetary policy and bolster its climate resilience efforts, particularly in the aftermath of recent devastating floods.
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Hindusthan Samachar / Jun Sarkar
