Pakistan, IMF reach staff-level agreement for $1.2 billion loan deal

Pakistan and the IMF connected Wednesday (October 15, 2025) reached a staff-level statement (SLA) connected the country's indebtedness programmes, paving the mode for Islamabad to entree $1.2 billion, pending support from the planetary lender's board.

The Washington-based International Monetary Fund (IMF) volition supply Pakistan with $1 cardinal nether its Extended Fund Facility (EFF) and $200 cardinal nether its Resilience and Sustainability Facility (RSF) aft support from the fund’s board.

Last week, an IMF ngo led by Iva Petrova concluded talks with Pakistani authorities connected the 2nd reappraisal of the EFF agreed successful 2024 and the archetypal reappraisal for the RSF clime indebtedness agreed this year, but it near Pakistan without signing a staff-level agreement.

In a connection issued aboriginal connected Wednesday, Ms. Petrova stated that the staff-level statement remained taxable to support by the IMF Executive Board.

“Supported by the EFF, Pakistan’s economical programme is entrenching macroeconomic stableness and rebuilding marketplace confidence,” she said.

“The betterment remains connected track, with the FY25 existent relationship signaling a surplus — the archetypal successful 14 years, the fiscal superior equilibrium surpassing the programme target, ostentation remaining contained, outer buffers strengthening, and fiscal conditions improving arsenic sovereign spreads person narrowed significantly,” she said.

However, she added, the caller floods had weighed connected the country’s outlook, peculiarly of the agriculture sector, bringing down the projected FY26 gross home merchandise (GDP) to astir 3.25-3.5%.

The IMF authoritative besides noted advancement connected Pakistan’s argumentation priorities, saying: “The authorities reaffirmed their committedness to the EFF and RSF-supported programmes, and to maintaining dependable and prudent macroeconomic policies portion advancing ongoing structural reforms.”

She said that authorities remained committed to gathering the FY26 fund superior surplus of 1.6% of GDP, anchored successful sustained efforts to mobilise gross done taxation argumentation and compliance measures, and “stand acceptable to instrumentality indispensable actions should gross shortfalls hazard programme targets”.

“At the aforesaid time, the authorities are assessing the flood harm and are providing urgent flood alleviation enactment successful the affected provinces via reallocations successful the provincial and national budgets,” Ms. Petrova said.

She besides said that efforts were underway to heighten gross mobilisation, broaden burden-sharing betwixt national and provincial governments, and fortify nationalist fiscal management.

The IMF authoritative noted that the State Bank of Pakistan (SBP) was committed to a prudent monetary argumentation stance to guarantee ostentation remains durably wrong its people scope of 5 to 7 per cent.

On the contented of circular indebtedness to the powerfulness sector, she said that Pakistan remained committed to preventing its accumulation done timely tariff adjustments that guarantee outgo betterment and maintaining a progressive tariff structure.

Ms. Petrova added that the caller floods and those of 2022 had underscored the request for gathering Pakistan’s clime resilience.