Overview
- Agreement covers the second review of the Extended Fund Facility and the first review of the Resilience and Sustainability Facility, with access to $1.0 billion and $200 million respectively once the Executive Board signs off.
- Total disbursements under the two arrangements would rise to about $3.3 billion, according to the IMF statement led by mission chief Iva Petrova.
- The Fund reports gains including a FY25 current account surplus for the first time in 14 years, contained inflation, stronger external buffers, and narrower sovereign spreads.
- Pakistani authorities reaffirm targets and reforms, including a FY26 primary surplus of 1.6% of GDP, tax and energy-sector measures, and strengthened social protection under BISP.
- Floods affecting nearly 7 million people and causing over 1,000 deaths have cut the FY26 growth outlook to roughly 3.25–3.5%, reinforcing the RSF focus on climate resilience; markets rallied and officials flagged a yuan-denominated green Panda bond this year and a return to global bonds next year.