International Monetary Fund (IMF) is expected to approve a $1.2 billion tranche for Pakistan today, as its Executive Board meets to review the country’s economic performance under ongoing financial assistance programs.
According to official sources, the IMF Board will assess Pakistan’s third economic review under the Extended Fund Facility (EFF), which could unlock the next installment of approximately $1.2 billion. Pakistan has reportedly met key conditions required under the program, paving the way for approval.
The meeting is also expected to review Pakistan’s progress under the Resilience and Sustainability Facility (RSF), a climate-focused financing arrangement, with an additional $200 million tranche potentially under consideration.
Pakistan had reached a staff-level agreement with the IMF on March 27 this year, following months of negotiations over fiscal reforms and structural adjustments.
Officials from the Ministry of Finance indicated that petroleum levy collections may exceed the target of 1,468 billion rupees, while the government is also considering further increases in the levy to strengthen revenue generation.
The IMF has meanwhile continued to push Pakistan to reduce or phase out subsidies in key sectors, including energy, as part of broader fiscal consolidation measures.
Government sources said inflation has shown signs of easing and economic indicators have improved, although external risks remain due to ongoing geopolitical tensions in the Middle East.
Authorities have assured the IMF of continued commitment to maintaining fiscal discipline and implementing required structural reforms.
In addition, Pakistan is expected to receive further support under the RSF program aimed at strengthening climate resilience, reflecting growing global emphasis on climate financing for developing economies.
During recent global financial meetings in Washington, climate finance discussions gained momentum, with increased calls for expanded funding to support vulnerable countries.
Pakistan has also presented its position on climate action, budget priorities, and environmental financing needs to international financial institutions, while signaling plans to further integrate climate policy into its national budget framework.
