The Executive Board of the International Monetary Fund (IMF) is scheduled to meet today, December 8, to review Pakistan’s request for the release of a $1.2 billion tranche under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). This information was provided in the IMF’s latest schedule.
It is noteworthy that Pakistan and the IMF reached a staff-level agreement in October following negotiations held in Karachi, Islamabad, and Washington. The agreement includes reviews of both the EFF and RSF programs, which require the IMF Board’s approval. If approved, approximately $1.2 billion will be disbursed, of which $1 billion will be under the EFF and $200 million under the RSF.
Meanwhile, IMF Deputy Managing Director Bo Li praised Pakistan’s reform progress, stating that the country is on the right path toward reforms and stabilization. According to sources in the Ministry of Finance, he also highlighted that the $7 billion stabilization program, along with $1.3 billion under the RSF, will help strengthen Pakistan’s financial and fiscal systems against climate-related risks.
In recent months, the IMF has acknowledged Pakistan’s progress in fiscal stability, reducing inflation, and improving foreign exchange reserves. However, it noted that risks persist due to flood-related damages and emphasized the need for fiscal and monetary policies to remain strict and data-driven.
Ahead of the Board meeting, the IMF released its Governance and Corruption Diagnostic Assessment, which was a mandatory requirement for approval. The report identifies systemic governance weaknesses and states that if Pakistan fully implements the 15-point reform plan, economic growth could rise to 6.5% over the next five years. Finance Minister Muhammad Aurangzeb said the assessment would accelerate long-standing reforms, and several recommendations are already being implemented.
If the Board grants approval today (Monday), the $1.2 billion tranche could be released as early as the next day.
