The International Monetary Fund (IMF) said Wednesday it had reached a staff-level agreement with Pakistan to unlock $1.2 billion in funding, pending approval by the Fund’s Executive Board. The deal includes $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility, bringing total disbursements to about $3.3 billion.
IMF mission chief Iva Petrova said Pakistan’s recovery “remains on track,” citing the first current account surplus in 14 years, contained inflation, and stronger reserves. She warned, however, that recent floods had weakened the agricultural outlook, cutting projected FY26 growth to about 3.25–3.5 percent.
Islamabad reaffirmed its commitment to prudent policies, a primary budget surplus of 1.6 percent of GDP, and expanded social programs under the Benazir Income Support Programme. The IMF also welcomed reforms to simplify taxes, control circular debt, privatize inefficient utilities, and strengthen climate resilience through green mobility and energy reforms.