ECONOMIC NEWS
ISLAMABAD: The International Monetary Fund’s (IMF) Executive Board is scheduled to meet today (December 8) to decide whether Pakistan will receive the next $1.2 billion tranche under its ongoing loan arrangements.
The IMF confirmed that its board sessions will run from December 8 to 14, with Pakistan’s case included in the lineup. The discussion will center on the staff-level agreement reached in October after several rounds of talks held in Karachi, Islamabad, and Washington.
If cleared, the release will consist of about $1 billion from the Extended Fund Facility (EFF) and another $200 million under the Resilience and Sustainability Facility (RSF).
Pakistan is currently awaiting the third payout of the $7 billion EFF package. The country earlier received $1 billion in September 2024 and another tranche in May 2025. The RSF arrangement, worth $1.3 billion in total, is also expected to deliver its first $200 million installment.
The IMF’s decision will hinge on its assessment of Pakistan’s economic performance, including fiscal discipline, monetary policy, progress on structural reforms, and commitments related to climate resilience.
The Fund has noted improvements in areas such as budget consolidation, falling inflation, and the State Bank of Pakistan’s continued tight monetary stance. It also acknowledged ongoing reforms in state-owned enterprises, energy, competition policies, and public-service delivery.
Under the RSF, the government has emphasized climate-related measures, including disaster-resilient planning, better water-resource management, and stronger climate-data systems—particularly important after the devastating floods that hit the country in recent years.
Ahead of the board meeting, the IMF released its Governance and Corruption Diagnostic Assessment (GCDA), identifying long-standing governance weaknesses and outlining a 15-point reform roadmap. According to the report, effective implementation of these measures could help lift Pakistan’s economic growth to between 5% and 6.5% over the next five years.
Finance Minister Muhammad Aurangzeb welcomed the findings, calling the diagnostic report a “catalyst” for long-pending reforms and reaffirming the government’s resolve to act on the IMF’s recommendations.
Read more: https://nayakashmir.com/ajk-govts-reshuffle-intended-to-improve-governance/
