The IMF, Pakistan end up with a $ 1.2 billion rescue agreement

• Under SLA, Pakistan to secure $ 1.2 billion, the IMF says.
• Total funding under two arrangements to reach $ 3.3 billion.
• Pakistan publishes the first surplus of the current account in 14 years: the IMF.

The International Monetary Fund (IMF) said on Tuesday that it has reached an agreement with a personnel level with Pakistan on its loan program, which would allow the country to access $ 1.2 billion after a review.

Subject to a review of the Board of Directors, the IMF will provide Pakistan $ 1 billion in the context of the extensive installation of the Fund (EFF) and $ 200 million under the RESA and Sustainability Unit (RSF), bringing a total of $ 3.3 billion.

According to the IMF, IVA Petrova were held in Islamabad between September 24 and October 8, to revise progress in accordance with Pakistani’s continued financial programs-the extensive arrangement of 37 months as part of the EFF regulation and the 28 months under RSF.

“Supported by EFF, Pakistan’s financial program is to consolidate macroeconomic stability and rebuilding market confidence.

The lender also acknowledged that Pakistan has remained stable in implementing the EFF program, saying: “Authorities are committed to maintaining the fiscal effort to strengthen public finances, while providing the necessary support to the victims of recent floods;

He added that Pakistan’s fiscal primary balance had exceeded the program’s goal, inflation remained, and external regulators were reinforced in the midst of improving economic conditions and narrow state spread.

However, the Fund noted that recent floods – which have affected almost seven million people, caused more than 1,000 deaths and caused serious damage to housing, infrastructure and agricultural land – had weighed the economic perspective, especially in the field of agriculture. The damage, he said, had reduced the projection of GDP FY26 between 3.25 and 3.5 %.

The IMF emphasized that the disaster underlined Pakistan’s high vulnerability to climate disorders and the pressing need to enhance climate resilience.

The Pakistani authorities, said, confirmed their commitment to maintaining prudent macroeconomic policies and promoting structural reforms in both programs.

Basic political priorities include continuing fiscal integration, strengthening poverty reduction measures, improving revenue mobilization, maintaining a narrow and monetary policy based on data, restoring energy health and promotion.

The government remains committed to achieving a primary budget of FY26 1.6% of GDP through prolonged tax policies and compliance efforts. It also provides relief from emergency floods through redistribution within federal and provincial budgets.

The IMF made the progress of budgetary reforms, including the creation of a new tax policy office to simplify the tax code and to reduce ad hoc dependence. The cooperation between federal and provincial governments is deepened to improve revenue and financial management.

Meanwhile, the Pakistani State Bank remains focused on maintaining inflation within a range of 5-7%, adjusting its policy attitude, as required, on the basis of evolving economic conditions.

In the energy sector, authorities are committed to preventing further accumulation of circular debt by securing reflex -cost invoices, while continuing to improve privatization and efficiency in distribution and production companies.

Reforms are also ongoing to enhance private sector growth, improve government and reduce state intervention in the economy. Plans include measures to enhance the competitiveness and productivity of commerce, as well as reforms in the agriculture sector to ensure food security.

According to the RSF, Pakistan aims to enhance the resistance to climate change through green mobility initiatives, improve the funding of the risk of disasters and enhanced management of the water system.

“The IMF team expresses its sympathy to those affected by recent floods and are grateful to Pakistani, private sector and development partners for their cooperation and hospitality throughout this mission,” the statement added.