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Pakistan Secures IMF Staff-Level Deal and Seals IFC Swap to Bolster Financing

Officials target year-end board approval, signaling a pivot to diversified funding through a green Panda bond alongside privatization.

Overview

  • The IMF announced a staff-level agreement enabling $1.2 billion in disbursements, pending executive board approval by December 31 after Pakistan agreed to pre-flood budget targets and to publish a governance report.
  • The State Bank of Pakistan and IFC signed a swap agreement as the IFC designated Pakistan a regional hub, indicating deeper engagement in liquidity and private-sector development.
  • In meetings with ADCB and JP Morgan, Islamabad outlined plans for an inaugural green Panda bond in China and a refreshed global medium-term note program to widen funding options.
  • The government said the Reko Diq mining project is nearing financial close, with participation by Exim Bank expected in the financing syndicate.
  • Privatization steps advanced with a cabinet-cleared G2G sale of First Women Bank and bids for New York’s Roosevelt Hotel, while Aurangzeb pressed for faster climate finance through the Loss and Damage Fund and the GCF.