IMF Releases $1.2bn to Pakistan, SBP Confirms

Pakistan has received a $1.2 billion disbursement from IMF, and officials confirmed the amount was transferred to the State Bank of Pakistan.

The release keeps Pakistan’s IMF programme fully on track as the country continues economic stabilisation under the terms of the ongoing programme review.

As per sources, the IMF released $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility for climate reforms.

The Executive Board approved the funds on December 8, unlocking the latest tranche and the full amount was credited to the SBP account afterwards.

The IMF reported continued progress in stabilising Pakistan’s economy, citing easing inflation, stronger reserves and improving investor sentiment.

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The prime minister’s office welcomed the IMF decision, calling recognition of reforms and saying Pakistan had avoided default.

The IMF outlined priorities including stronger public finances, viable energy reforms, faster productivity measures and tight monetary policy.

Nigel Clarke said Pakistan must sustain prudent policies to support medium-term growth driven by a resilient private sector.

The IMF stressed urgent RSF reforms including improved water pricing, stronger disaster coordination and clearer climate-related financial disclosures.

As part of programme conditions, Pakistan is advancing its first large-scale privatisation, with bidding for a majority PIA stake scheduled for December 23.