The International Monetary Fund's executive board on Monday approved Pakistan's two loan reviews, unlocking about $1.2 billion.
The fund's executive board said Pakistan's commitment to implementing the programme has helped to keep stability and improve financing conditions despite the devastating floods this year.
The approval cleared the way for the immediate disbursement of about $1 billion under Pakistan's 37-month Extended Fund Facility, in addition to about another $200 million from its Resilience and Sustainability Facility programme.
The IMF approved Pakistan's $7 billion EFF programme in 2024 and its $1.4 billion RSF – the fund's programme to support countries' economic resilience against climate vulnerabilities – in May.
It said said Pakistan has made “significant progress” in stabilising its economy since the introduction of the EFF programme. It also said it expects inflation on food prices due to the floods to be temporary.
“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF deputy managing director Nigel Clarke said in a statement.
Mr Clarke a
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