December 8, 2025 – The International Monetary Fund (IMF) Executive Board has approved a $1.29 billion disbursement for Pakistan, marking a major milestone in the country’s ongoing economic stabilization efforts.
According to official sources, the approved amount will be transferred to the State Bank of Pakistan (SBP) within hours of the Executive Board’s endorsement. The disbursement includes support under the Extended Fund Facility (EFF) as well as climate-related financing.
IMF Reviews Staff-Level Agreement for Pakistan
The Executive Board convened to review Pakistan’s staff-level agreement, paving the way for the much-needed release of funds.
The IMF confirmed that the Board’s approval represents an important achievement for Pakistan, supporting both macroeconomic reforms and resilience-building initiatives.
Breakdown of the Approved Funds
✔ $1.09 Billion Under Existing EFF Program
The IMF has cleared the $1.09 billion tranche under Pakistan’s 37-month Extended Fund Facility (EFF), which the country secured in September 2024.
• First EFF tranche ($1 billion): Released in September 2024
• Second EFF tranche ($1 billion): Released in May 2025
• Third EFF tranche (now approved): $1.09 billion
This latest approval moves Pakistan further along in meeting the EFF’s reform commitments.
✔ $200 Million RSF Tranche for Climate Resilience
In addition to the EFF tranche, the IMF has also approved $200 million under the Resilience and Sustainability Facility (RSF) to support Pakistan in addressing climate-induced vulnerabilities.
This marks Pakistan’s first RSF disbursement, reinforcing the country’s long-term climate adaptation agenda.
Significant Boost for Pakistan’s Economy
The combined $1.29 billion approval is being viewed as a critical development for Pakistan’s financial stability, as it strengthens foreign exchange reserves and supports crucial economic reforms.
The IMF emphasized that the Executive Board’s endorsement highlights Pakistan’s progress under the current program and its commitment to structural improvements.