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IMF Clears About $1.3 Billion for Pakistan After Granting Waivers

The payout came with new commitments on taxes, energy prices, a flexible exchange rate.

Overview

  • Directors approved roughly $1 billion under the Extended Fund Facility and about $200–220 million via the Resilience and Sustainability Facility, taking total disbursements to around $3.3 billion.
  • The decision followed an October staff-level agreement after talks led by Iva Petrova in Karachi, Islamabad and Washington.
  • The board granted waivers for missed conditions, including lower Benazir Income Support Programme spending and revenue shortfalls, and eased some deadlines for the next review.
  • Pakistan pledged additional tax measures, regular electricity and gas tariff adjustments, and adherence to a flexible exchange rate to keep the programme on track.
  • The IMF released a Governance and Corruption Diagnostic highlighting entrenched weaknesses, which Pakistan published as a prior action alongside moves to restructure an undercapitalised bank.