The International Monetary Fund (IMF) has approved the release of about $1.32 billion to Pakistan under its ongoing financial assistance programme.
The approval came after the IMF Executive Board completed the first review of Pakistan’s economic reform programme under the Extended Fund Facility (EFF), Reuters reported.
With this latest approval, the total amount disbursed to Pakistan under the programme has increased significantly.
According to the report, Pakistan will be able to get about $1.1 billion under the Extended Fund Facility and about $220 million under the Resilience and Sustainability Facility.
This will raise the total disbursements made to Pakistan under the two ongoing programmes to about $4.8 billion.
The IMF said Pakistan had shown progress in stabilising its economy, improving fiscal discipline, and implementing reforms agreed upon under the bailout package.
The IMF noted that Pakistan’s economy has started recovering gradually after facing severe financial stress, including high inflation, foreign exchange shortages, and low foreign reserves.
According to the organisation, inflation has begun to ease, and economic growth is expected to improve in the coming months.
The global lender also stressed that Pakistan must continue implementing economic reforms, including improving tax collection, reducing losses in the energy sector, and maintaining tight monetary policies to control inflation.
The IMF said sustained policy discipline would be important to maintain economic stability.
The decision came despite objections raised by India. India reportedly expressed concerns at the IMF board meeting over continued financial support to Pakistan, citing issues related to terrorism financing and regional security.
However, the IMF board approved the review and allowed the release of funds.
Pakistan’s government welcomed the IMF decision and said the approval would help strengthen foreign exchange reserves, support economic reforms, and improve investor confidence.
Officials in Pakistan said the country remains committed to continuing reforms under the IMF programme.
