IMF releases $1.2 billion to Pakistan

The International Monetary Fund announced Monday it has released $1.2 billion to Pakistan, recognising its efforts in macroeconomic reform.

That brings to $3.3 billion the amount disbursed by the Washington-based fund to Islamabad under two programs aimed at providing financial support for economic reforms and mitigating the impacts of climate change.

IMF Deputy Managing Director Nigel Clarke said in a statement that "the implementation of reforms in Pakistan has helped to preserve macroeconomic stability despite recent shocks" to the country. 

He referred to floods during the past summer monsoon season that had killed more than 1,000 people by September.

"The authorities' commitment to meeting their primary balance target while providing the necessary emergency assistance in response to these severe floods is an important signal of their willingness to strengthen their credibility in fiscal policy," Clarke said.

But he urged the government to accelerate reforms to improve economic data collection, privatizations and promoting investment.

Mired in prolonged economic and political crisis, Pakistan is heavily dependent on external financing and narrowly avoided default in 2023, thanks to a $7 billion bailout from the IMF in 2024.

The South Asian nation is one of the largest debtors to the IMF after Argentina and Ukraine. It also secured a 10-year, $20 billion financing package from the World Bank in January.