IMF board to decide on $1.2bln loan for Pakistan tomorrow”, marking a crucial juncture for the country’s economy. The executive board of International Monetary Fund (IMF) will meet on December 8 to review Pakistan’s loan request.
This funding request comes after a staff-level deal in mid‑October between Pakistan and the IMF. Under that agreement, Pakistan stands to receive $1 billion under the ongoing Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF).
If the board approves, the total $1.2 billion could be disbursed as early as December 9. This infusion is seen as vital to support Pakistan’s economic stability and restore investor confidence.
What’s at Stake
According to officials, the IMF board will assess Pakistan’s recent economic performance. This includes fiscal discipline, inflation control, and progress on structural reforms.
The RSF component also demands climate‑related reforms. Pakistan has recently faced serious flood damage and is under pressure to improve water resource management and disaster resilience.
Government Outlook
The government says the funds will help stabilise the economy and support key reforms. They view the loan as a lifeline to manage external pressure, rebuild reserves, and help with debt repayments.
However, analysts warn that approval alone isn’t enough. They say Pakistan must follow through on structural reforms to deliver lasting results.
What Happens Next
- December 8: IMF board meets to vote on the loan.
- If approved, disbursement could begin December 9.
- Pakistan’s economic policies and reforms will remain under close scrutiny by investors, creditors, and rating agencies.
Read More : IMF Agreement Secured as Pakistan Advances Key Economic Reforms
