Pakistan eyes $1.2 billion IMF nod in today’s board meeting

The IMF Executive Board is set to meet in Washington today, where approval is expected for Pakistan’s next $1.2 billion tranche under its ongoing loan program.

The International Monetary Fund has confirmed that Pakistan’s case will be reviewed during its board meeting scheduled from December 8 to 14. The board will evaluate the staff-level agreement recently reached with Islamabad. If approved, the IMF may release a $1 billion tranche under Pakistan’s current loan programme.

In addition, Pakistan could receive the first $200 million instalment from the Resilience and Sustainability Facility, which is aimed at supporting climate-related initiatives. However, final approval depends on the board’s discussions during the meeting.

Earlier, Pakistan accepted a key IMF condition to conduct a special audit of supplementary grants issued over the last ten years. The approval follows the completion of ten days of technical discussions between Pakistan and the IMF. Officials confirmed that Pakistan also agreed to another requirement that limits the federal government’s discretionary authority in issuing supplementary grants.

The IMF’s technical mission arrived in Pakistan on November 11 to review progress on budget targets. During the talks, both sides focused on reforms in public finance management and measures to improve transparency in the budget process. The discussions included reviewing the digital Public Finance Management Assessment and examining oversight mechanisms for the digitized PFM master plan.

Officials said that the agreement reflects Pakistan’s commitment to implementing reforms and meeting IMF conditions. The discussions also highlight the importance of improving budget monitoring and ensuring proper financial governance.

If the board approves the agreements, Pakistan will receive the IMF funds, providing a boost to its economy. The government is expected to continue implementing reforms and strengthening financial oversight to maintain the confidence of international lenders and support sustainable economic growth.