IMF Reaches Staff-Level Agreement on the Second Review for the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the First Review for 28-month Arrangement Under the Resilience and Sustainability Facility (RSF) – Pakistan https://t.co/slbRIrVbw5
— Ministry of Finance, Government of Pakistan (@Financegovpk) October 15, 2025
Under the arrangement, the IMF will provide Pakistan $1 billion under its Extended Fund Facility and $200 million under its Resilience and Sustainability Facility, bringing total disbursements under the two arrangements to about $3.3 billion, stated a release issued by the IMF’s Communications Department.The staff-level agreement is subject to approval by the IMF Executive Board.
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the second review of the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and the first review of the 28-month arrangement under the Resilience and Sustainability Facility (RSF). The staff-level agreement is subject to approval by the IMF Executive Board. Upon approval, Pakistan will have access to about $1.0 billion (SDR 760 million) under the EFF and about $200 million (SDR 154 million) under the RSF, bringing total disbursements under the two arrangements to about $3.3 billion.”
It further praised Pakistan for implementation of the EFF-supported programme terming it strong. “The authorities are committed to sustaining the fiscal effort to strengthen public finances while providing needed support to the victims of the recent floods; ensuring inflation remains durably within the SBP’s target range; restoring the viability of the energy sector; and advancing structural reforms,” it observed.
The news has fuelled a wave of optimism in the country’s financial sector. Pakistan Stock Exchange rejoiced the development as the benchmark KSE-100 index jumped by nearly 2, 000 points. Additionally, Prime Minister Shehbaz Sharif expressed satisfaction over the staff-level agreement with IMF for $1.2 billion, calling it a reflection of Pakistan’s improved macroeconomic indicators and confidence in rapidly improving economic situation.
IMF noted that the authorities’ climate reform agenda, backed by the RSF, is progressing. The recent floods highlight the critical need to consistently implement comprehensive reforms and policies that enhance resilience and reduce vulnerabilities to climate-related risks.
It wrote that an International Monetary Fund (IMF) team, led by Iva Petrova, held discussions during September 24-October 8, 2025, mission to Karachi and Islamabad, and in Washington DC, for the second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF). At the conclusion of the discussions, Petrova issued the following statement:
Further, supported by the EFF, Pakistan’s economic programme is entrenching macroeconomic stability and rebuilding market confidence. The recovery remains on track, with the FY25 current account recording a surplus the first in 14 years, the fiscal primary balance surpassing the program target, inflation remaining contained, external buffers strengthening, and financial conditions improving as sovereign spreads have narrowed significantly, the Fund said.
It also noted that the recent floods- which have affected nearly seven million people, caused over 1,000 deaths, and severely damaged housing, public infrastructure, and agricultural land- have weighed on the outlook, particularly of the agriculture sector, bringing down the projected FY26 GDP to about 3¼ -3½ percent. The floods underscore Pakistan’s high vulnerability to natural disasters and substantial climate-related risks, and the continuing need to build climate resilience.
“The authorities reaffirmed their commitment to the EFF- and RSF-supported programmes, and to maintaining sound and prudent macroeconomic policies while advancing ongoing structural reforms,” IMF wrote.