Pakistan has reached a staff-level agreement with the International Monetary Fund for the release of $1.2 billion under its ongoing bailout programme. The development follows several days of negotiations in Islamabad, with both state media and the IMF confirming the breakthrough.
Part Of $7 Billion Bailout Package
The latest tranche is part of the broader $7 billion bailout approved in July 2024, aimed at stabilising Pakistan’s fragile economy and preventing a sovereign default. The programme has been critical in supporting the country’s external finances.
IMF Flags Economic Stability Gains
The IMF noted that Pakistan’s reform programme is helping strengthen macroeconomic stability and rebuild investor confidence. It added that continued policy discipline will remain key to sustaining economic recovery.
The agreement comes weeks after Pakistan urged the IMF to consider relief measures following devastating floods that killed over 1,000 people and impacted around 7 million. The disaster has added fresh strain on the country’s already stressed economy.
Focus On Climate Resilience
Highlighting Pakistan’s vulnerability, the IMF stressed the need for stronger climate resilience and disaster preparedness. The fund also expressed sympathy for those affected by the floods.
