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IMF Board Approves $1.29 Billion Disbursement to Pakistan

IMF staff cited strong programme implementation in reaching the decision.

Overview

  • Reporting indicates the disbursement combines over $1 billion under the Extended Fund Facility and an initial tranche of more than $200 million from the Rapid Financing Instrument.
  • With this release, total payouts across Pakistan’s IMF programmes are expected to reach about $3.3 billion, according to sources.
  • The funds are expected to strengthen Pakistan’s foreign exchange reserves, according to the coverage.
  • An IMF team led by Iva Petrova held talks in Karachi and Islamabad from September 24 to October 8 and in Washington to finalise the staff-level agreement.
  • Alongside the decision, the IMF published a Governance and Corruption Diagnostic warning that entrenched corruption and weak institutions threaten fiscal outcomes and the effectiveness of reforms, as the Fund presses priorities on fiscal discipline, inflation control, energy-sector viability and RSF-backed climate measures.