The International Monetary Fund (IMF) has transferred $1.2 billion to Pakistan following the approval of its Extended Fund Facility (EFF) and the climate-focused Resilience and Sustainability Facility (RSF), the State Bank of Pakistan (SBP) confirmed on Thursday.
The funds are set to be reflected in the SBP’s foreign exchange reserves for the week ending December 12, 2025.
The IMF’s Executive Board approved the financial support after completing the second review of Pakistan’s economic reform programme under the EFF and the first review under the RSF. Deputy Managing Director and Acting Chair Nigel Clarke praised Pakistan’s efforts, stating, “Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability despite several recent shocks.”
Clarke highlighted that the country has seen accelerated GDP growth, anchored inflation expectations, and moderation in fiscal and external imbalances. He emphasised that maintaining prudent policies is essential to strengthen macroeconomic stability while promoting private sector-led growth and sustainable development.
#SBP has received SDR 914 million (equivalent to about US$ 1.2 billion) under the EFF and RSF in value 10 December 2025 from the IMF.https://t.co/ifU6HGDWTi pic.twitter.com/0JR8pcyx5u
— SBP (@StateBank_Pak) December 11, 2025
The IMF also acknowledged Pakistan’s commitment to meeting the FY2026 primary balance target while responding to urgent flood relief needs. Clarke noted that reforms to broaden the tax base and simplify tax policies are vital for achieving fiscal sustainability and funding initiatives in climate resilience, social protection, human capital development, and public investment.
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On monetary policy, the IMF stressed that a tight stance has been pivotal in controlling inflation and should continue to keep it within the SBP’s target range. Strengthening central bank communication and deepening the interbank foreign exchange market, while maintaining exchange rate flexibility, are also key steps recommended by the global lender.
Financial sector stability was another area of focus. The IMF urged decisive enforcement of financial regulations and encouraged capital market development to expand financing options for both public and private sectors. Structural reforms, including SOE governance improvements, privatisation, and better economic data, were highlighted as crucial for unlocking growth potential and attracting private investment.
Following the IMF announcement, Prime Minister Shehbaz Sharif welcomed the approval, saying it underscores Pakistan’s progress in implementing measures necessary for economic stability and growth. He praised Finance Minister Muhammad Aurangzeb and his team for their efforts in executing key economic reforms.
