Pakistan has successfully reached a preliminary staff-level agreement with the International Monetary Fund (IMF) to unlock a crucial $1.2 billion installment from its existing bailout package.
This significant development follows intense discussions in Islamabad and was officially confirmed by both state media and the IMF in a recent statement. The original $7 billion bailout, initially approved by the IMF in July 2024, was designed to stabilize Pakistan’s economy and avert a potential default on its debt obligations.
The IMF highlighted that Pakistan’s ongoing economic program is proving effective in strengthening macroeconomic stability and restoring market confidence. This positive assessment comes at a critical time, as Pakistan had appealed to the IMF for flexibility and concessions in light of recent catastrophic floods.
These devastating natural disasters tragically claimed over 1,000 lives and impacted approximately 7 million people across the country. The IMF acknowledged Pakistan’s inherent susceptibility to natural calamities and climate-related risks, emphasizing the urgent need for continued efforts to build long-term climate resilience. The organization also extended its deepest sympathies to all those affected by the recent disaster.