The International Monetary Fund (IMF) has approved a financial package worth $1.2 billion for Pakistan under its ongoing economic assistance and climate-support programmes, providing another major boost to the country’s financial stability efforts. The approval came during a recent meeting of the IMF Executive Board held in Washington, where Pakistan’s progress on economic reforms and programme commitments was reviewed.
According to reports, $1 billion of the approved amount will be released under the Extended Fund Facility (EFF), which is aimed at supporting Pakistan’s broader economic reform agenda, stabilizing foreign reserves, and improving fiscal management. In addition, $200 million will be provided through the Resilience and Sustainability Facility (RSF), a programme designed to help countries strengthen climate resilience, address environmental challenges, and improve long-term sustainability planning.
The latest approval is being viewed as an important development for Pakistan’s economy, as the country continues efforts to stabilize inflation, strengthen public finances, and maintain investor confidence. The funding is also expected to support ongoing reforms related to taxation, energy, governance, and economic management under the IMF programme framework.
Officials believe the financial support will help ease external financing pressures while reinforcing Pakistan’s commitment to meeting reform targets agreed with international lenders. The climate-related portion of the funding is also expected to assist the country in addressing environmental risks, improving disaster preparedness, and supporting initiatives linked to climate adaptation and sustainable development.
