Islamabad, March 26, 2025: Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on the first review of Pakistan’s Extended Fund Facility (EFF) and a new $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF), according to an official IMF statement.
The agreement, pending approval by the IMF’s Executive Board, grants Pakistan access to $1.0 billion under the EFF, bringing total disbursements to $2.0 billion. The RSF funds, spread over 28 months, will support climate resilience and sustainability initiatives.
The agreement follows extensive discussions between IMF staff, led by Nathan Porter, and Pakistani authorities in Karachi and Islamabad from February 24 to March 14, 2025.
The IMF acknowledged Pakistan’s progress in restoring macroeconomic stability despite global challenges. Key priorities under the EFF include reducing public debt and improving transparency, controlling inflation, which has fallen to its lowest level since 2015, enhancing efficiency and cost-effectiveness of the energy sector and strengthening health and education programs.
The RSF will support Pakistan in addressing climate-related vulnerabilities by improving public investment planning, enhancing water management, and promoting green energy and mobility.
While Pakistan has made significant progress, the IMF warns of potential risks, including global economic volatility, policy slippages, and climate challenges. To sustain progress, Pakistan must maintain prudent monetary policies to control inflation and stabilize foreign exchange reserves, continue structural reforms, particularly in taxation and public financial management and pursue energy sector reforms to reduce costs and improve distribution.
The IMF praised Pakistan’s commitment to long-term economic stability and climate adaptation while emphasizing the need for continued support for disaster resilience initiatives.
The IMF delegation expressed gratitude to Pakistani authorities, the private sector, and development partners for their cooperation during the discussions in Islamabad and Karachi.
