IMF approves $1.2bn for Pakistan

May 08, 2026 (MLN): Pakistan has secured another major financial milestone as the International Monetary Fund (IMF) approved the release of the next $1.2 billion tranche for the country, according to Finance Ministry sources.

The approval was granted during a meeting of the IMF Executive Board held in Washington, D.C., signaling continued international confidence in Pakistan’s economic reform agenda.

Out of the total amount, Pakistan will receive $1 billion under the Extended Fund Facility (EFF), while an additional $200 million has been approved under the Resilience and Sustainability Facility (RSF) to support climate resilience and sustainable development initiatives.

The development comes as a strong positive for the country’s external account position, foreign exchange reserves, and overall investor sentiment.

Pakistan’s ongoing $7 billion EFF program spans 37 months and aims to stabilize the economy through structural reforms, fiscal discipline, and measures to strengthen sustainable growth.

The approval will help improve market confidence and provide further breathing space to the government as it continues efforts to steer the economy toward recovery and long-term stability.

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