IMF Executive Board to decide on Pakistan funds today

The International Monetary Fund’s (IMF) Executive Board will hold a meeting on Monday, where it may approve roughly $1.2 billion in new funds for Pakistan, a sum drawn from two active loan programs aimed at stabilizing the country’s economy.

According to the IMF’s schedule, the funds comprise about $1.0 billion under the existing Extended Fund Facility (EFF) and $200 million under the newer Resilience and Sustainability Facility (RSF). The disbursement, if approved, is expected to be deposited in Pakistan’s account by Dec. 9.

According to officials, the fresh tranche will be used to support macroeconomic stability, climate-related commitments under the RSF, and broader structural reforms previously agreed with the IMF.

IMF, Pakistan and fragile reforms

In May, the IMF completed the first review under the 37-month EFF arrangement, releasing about $1 billion to Islamabad and approving a new RSF arrangement that offered access to up to $1.4 billion.

The EFF was approved in September last year, with the goal of helping Pakistan rebuild resilience, stabilize its external finances, broaden the tax base, and reform state-owned enterprises. According to IMF, initial policy implementation showed progress, with Pakistan achieving improved fiscal discipline, a primary surplus, falling inflation, and strengthening reserves.

In October this year, Islamabad and the IMF reached a new staff-level agreement (SLA) covering the second review of the EFF and first review of the RSF. That SLA laid the groundwork for the upcoming disbursement — pending final board approval.

However, the release of funds is contingent not just on board approval, but also on compliance with structural benchmarks, including publication of a long-delayed Governance and Corruption Diagnostic report. Pakistani authorities recently resolved technical differences and committed to publishing the report ahead of the board meeting.

What it means

If approved, the $1.2 billion tranche would mark a critical infusion for Pakistan’s economy at a sensitive juncture, restoring some liquidity and external-finance buffers that have come under pressure in recent months. Analysts say it could bolster investor confidence.

At the same time, the funds are not a cure-all: the success of this bailout depends on Islamabad fulfilling IMF’s structural conditions — fiscal discipline, energy-sector reforms, improved governance, and transparency. The stakes remain high.

For now, all eyes will be on the IMF board meeting. Approval — or delay — could set the tone for Pakistan’s financial outlook in 2026.