News
October 09, 2026
Pakistan, IMF Reach Staff-Level Agreement for $1.2bn Tranche
By Khaleeq Kiani
Islamabad: The International Monetary Fund (IMF) on Thursday reached a staff-level agreement (SLA) with the Pakistani authorities on the fourth review under the $7 billion Extended Fund Facility (EFF) and the third review under the $1.4bn Resilience and Sustainability Facility (RSF), qualifying Pakistan to draw about $1.2bn from the Fund’s resources within four to five weeks.
“The IMF team has reached an SLA with the Pakistani authorities on the fourth review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the third review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF)”, the lending agency announced in an early morning statement .
The SLA is subject to approval by the IMF Executive Board. Upon approval, Pakistan will have access to about $1bn (SDR 760 million) under the EFF and about $210 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about $5.7bn, it said.
The two sides also concluded Article IV consultations, the IMF announced from Washington headquarters.
“Program implementation under the EFF has remained broadly on track despite a challenging external environment. The authorities remain committed to preserving macroeconomic stability, strengthening public finances, ensuring that inflation returns durably to the State Bank of Pakistan’s target range, enhancing energy sector viability, strengthening social protection, and accelerating reforms to foster sustainable, private sector-led, and inclusive growth,” the IMF statement said.
The authorities have also continued to advance their climate reform agenda under the RSF to strengthen Pakistan’s resilience and reduce vulnerabilities to climate-related risks, it added.
The fund team led by Iva Petrova was in Pakistan and held discussions under the 2026 Article IV consultation and on the 4th review EFF and the 3rd review under the RSF from September 23 to October 7.
“Supported by the EFF, the authorities have successfully navigated the impact of the Middle East conflict, and strong policies have helped preserve macroeconomic stability. Real GDP growth reached 4 per cent in the first three quarters of FY26, and although higher energy prices and supply disruptions weakened somewhat the momentum, FY26 growth is estimated at 3.6pc.”
Headline inflation moderated to about 10.3pc in September after peaking in May, while core inflation remained contained, the fund said.
It added: “The current account was broadly balanced in FY26 supported by strong remittances, and gross reserves rose to about $21.5bn by end-September. Sovereign rating upgrades and renewed international market access also point to stronger policy credibility. Nevertheless, the fund said risks remain high, particularly from geopolitical tensions, volatile energy prices, tighter global financial conditions, and trade disruptions.”
The authorities remain committed to sound macroeconomic policies, which are critical to safeguarding stability amidst the ongoing shock-prone environment, it further stated. - Dawn
Courtesy Dawn
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