ISLAMABAD: The International Monetary Fund’s Executive Board is scheduled to meet on December 8 to review Pakistan’s request for a $1.2 billion disbursement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), according to the IMF’s updated schedule. This decision comes after Pakistan and the IMF reached a staff-level agreement in October, following extensive negotiations in Karachi, Islamabad, and Washington. The agreement requires board approval before the funds can be released.
If approved, Pakistan would receive approximately $1.2 billion, with around $1 billion coming from the EFF and $200 million from the RSF. The funds are expected to support Pakistan’s ongoing economic reform agenda, strengthen external reserves, and enhance fiscal and financial resilience, particularly in addressing climate-related risks.
IMF Deputy Managing Director Bo Li praised Pakistan’s reform trajectory, stating that the country is “on the right path of reform and resilience.” He highlighted that, in addition to the $7 billion stabilisation programme, the RSF would provide $1.3 billion aimed at bolstering Pakistan’s fiscal and financial resilience against climate challenges. The IMF has previously acknowledged Pakistan’s progress in fiscal consolidation, reducing inflation, and rebuilding external buffers, while also warning that risks remain elevated due to flood-related losses and the need for tight, data-driven monetary policy.
The board meeting follows the release of the IMF’s Governance and Corruption Diagnostic Assessment, a mandatory condition for disbursement approval. The report identified systemic governance gaps in Pakistan and suggested that implementing a 15-point reform plan could raise the country’s growth rate to as high as 6.5% over five years. The findings have sparked calls from opposition leaders for investigations into alleged governance failures. Khyber Pakhtunkhwa Chief Minister Mohammad Sohail Afridi highlighted “grave questions” regarding the use of public resources and potential diversion of funds abroad.
Finance Minister Muhammad Aurangzeb responded by emphasizing that the diagnostic report should serve as a catalyst for long-overdue reforms. He noted that several recommendations from the IMF report are already being implemented to improve governance, fiscal management, and accountability.
If the IMF board grants approval on Monday, the $1.2 billion disbursement could be released as early as the following day, providing a crucial boost to Pakistan’s external reserves and supporting the country’s broader reform and economic stabilization efforts. The move is expected to strengthen investor confidence and reinforce Pakistan’s ongoing economic reform trajectory amid domestic and international scrutiny.
