Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), a major step signaling renewed confidence in Pakistan’s economic management and reform progress.
The agreement covers the second review of the EFF and the first review of the RSF, with combined disbursements totaling $3.3 billion, according to a statement issued by the IMF’s Communications Department on Tuesday. The IMF Executive Board’s approval is required before the funds are released.
Under the latest arrangement, Pakistan is set to receive $1 billion under the Extended Fund Facility and $200 million through the Resilience and Sustainability Facility. The Fund commended Pakistan’s commitment to fiscal discipline and ongoing structural reforms aimed at strengthening economic stability and addressing climate-related vulnerabilities.
The IMF noted that Pakistan’s macroeconomic recovery remains on track, with the fiscal primary balance exceeding targets, inflation staying within a manageable range, and external reserves showing improvement. The FY25 current account surplus, the first in 14 years, has further reinforced investor confidence.
The IMF team, led by Iva Petrova, conducted detailed discussions with Pakistani officials between September 24 and October 8, 2025, in Karachi, Islamabad, and Washington, DC. The talks focused on Pakistan’s progress under the reform agenda, particularly fiscal consolidation, energy sector reforms, and climate resilience strategies.
Prime Minister Shehbaz Sharif welcomed the development, describing the agreement as a reflection of Pakistan’s improving macroeconomic fundamentals. The announcement triggered a wave of optimism in the country’s financial markets, with the Pakistan Stock Exchange (PSX) rallying nearly 2,000 points shortly after the news broke.
The IMF praised Pakistan’s continued implementation of policy commitments under the EFF-supported program. It emphasized that the government remains focused on enhancing public finances, supporting flood victims, and ensuring inflation remains within the State Bank of Pakistan’s target range.
The Fund also highlighted Pakistan’s climate reform efforts under the RSF, stressing that recent floods — which affected millions and damaged key infrastructure — underline the urgent need to strengthen climate resilience and mitigate future risks.
Reaffirming its commitment, Pakistan assured the IMF that it will maintain prudent macroeconomic policies while continuing structural reforms to secure long-term economic sustainability. The agreement marks another important milestone in Pakistan’s partnership with the IMF, signaling stability, confidence, and a gradual recovery path ahead.