Washington, DC, The International Monetary Fund (IMF) team, led by Nathan Porter, has reached a staff-level agreement with the Pakistani authorities on the first review under Pakistan’s Stand-By Arrangement (SBA), subject to approval by the IMF’s Executive Board. This agreement will grant Pakistan access to approximately US$700 million, enhancing the nation’s financial stability and supporting its economic reforms.

According to International Monetary Fund (IMF), the discussions, held in Islamabad from November 2-15, focused on Pakistan’s economic program supported by the IMF SBA. The agreement, totaling US$3 billion (SDR2,250 million), will bring the total disbursements under the program to almost US$1.9 billion upon approval.

The IMF highlighted the nascent economic recovery in Pakistan, supported by international partnerships and policy adjustments. However, the nation faces external risks, including geopolitical tensions and global financial conditions. The authorities’ policy priorities under the SBA include fiscal consolidation to reduce public debt, strengthening social safety nets, reforming the energy sector, returning to a market-determined exchange rate, proactive monetary policies for inflation control, building financial sector resilience, and continuing state-owned enterprise and governance reforms. The IMF team acknowledged Pakistan’s progress and emphasized the importance of timely external support for sustaining these reform efforts.