ISLAMABAD – The International Monetary Fund (International Monetary Fund) has approved a $1.2 billion tranche for Pakistan under its ongoing financial assistance programme, marking a key milestone in the country’s economic stabilization efforts in 2026.
The IMF Executive Board meeting cleared the tranche after noting progress in fiscal discipline, revenue collection, and structural reforms.
According to reports, the approval follows Pakistan’s successful completion of key review conditions under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The latest disbursement includes around $1 billion under the EFF and approximately $210 million under climate-related support arrangements.
Officials said the fresh inflow will help strengthen Pakistan’s foreign exchange reserves, stabilize the currency, and support ongoing economic reforms. However, the IMF has also urged continued efforts in tax reforms, energy sector adjustments, and reducing fiscal deficits to ensure long-term stability.
Pakistan has been under an IMF-supported programme aimed at improving macroeconomic conditions, controlling inflation, and ensuring sustainable growth. The latest tranche is expected to provide short-term relief to external financing pressures while keeping reform momentum intact.
