IMF Reaches Staff-Level Agreement for $1.21 Billion Pakistan Loan

The International Monetary Fund reached a staff-level agreement with Pakistan on October 8, 2026, potentially unlocking approximately $1.21 billion in financing. The package includes $1 billion under a 37-month Extended Fund Facility and $210 million under a 28-month Resilience and Sustainability Facility.

The deal follows discussions held between September 23 and October 7 in Karachi and Islamabad. The IMF noted that Pakistan maintained macroeconomic stability, reporting a real GDP growth of 4% in the first three quarters of FY26 and moderated inflation. However, the lender warned that geopolitical tensions and volatile energy prices continue to pose high risks to the economy.

To ensure debt sustainability, the IMF urged the government to firmly implement the FY27 budget, continue revenue administration reforms, and make timely energy tariff adjustments. The State Bank of Pakistan was specifically urged to maintain a tight monetary stance to bring inflation back to its target range. The agreement now awaits final approval from the IMF Executive Board.