The International Monetary Fund (IMF) said on Wednesday that it had reached a staff-level agreement (SLA) with Pakistan on its loan programme, which would allow the country to access $1.2 billion after approval from the fund’s board.
The IMF will provide Pakistan $1bn under its Extended Fund Facility (EFF) and $200 million under its Resilience and Sustainability Facility (RSF), bringing total disbursements under the two arrangements to about $3.3bn.
Last week, an IMF mission led by Iva Petrova had concluded talks with Pakistani authorities on the second review of the EFF — agreed in 2024 to shore up the economy after a severe financial crisis — and the first one of the RSF climate loan.
In a statement[1] issued early on Wednesday by the Fund, Petrova stated that the IMF team had reached a staff-level agreement with Pakistani authorities. Petrova added that the staff-level agreement was subject to approval by the IMF Executive Board.
“Supported by the EFF, Pakistan’s economic programme is entrenching macroeconomic stability and rebuilding market confidence,” she said.
“The recovery remains on track, with the FY25 current account recording a surplus — the first in 14 years, the fiscal primary balance surpassing the programme target, inflation remaining contained, external buffers strengthening, and financial conditions improving as sovereign spreads have narrowed significantly,” she said.
However, the IMF official added, the recent floods had weighed on the country’s outlook, particularly of the agriculture sector, bringing down the projected FY26 gross domestic product (GDP) to about 3.25-3.5 per cent.
“The floods underscore Pakistan’s high vulnerability to natural disasters and substantial climate-related risks, and the continuing need to build climate resilience,” Petrova said.
More to follow