IMF Approves $1.32 Billion Loan to Pakistan to Boost Economic Stability

The International Monetary Fund (IMF) has approved a loan of approximately $1.32 billion to Pakistan, aimed at strengthening financial stability and reducing external economic pressures on the country.

According to the released report, the majority of this financial assistance, nearly $1.1 billion, will be provided through the IMF’s Extended Fund Facility (EFF). This program is typically designed to support countries facing structural economic challenges and in need of comprehensive reforms.

Additionally, $220 million has been allocated under the Resilience and Sustainability Facility (RSF), a program focused on enhancing countries’ ability to withstand economic shocks and long-term challenges.

This move comes amid increasing financial pressures, dwindling foreign reserves, and the need for structural reforms in key economic sectors in Pakistan in recent years. IMF officials have emphasized that the implementation of committed reforms is a fundamental condition for the continuation of financial support.