Pakistan Anticipates Over $2 Billion from IMF Following Upcoming Staff-Level Agreement

Pakistan is poised to receive over $2 billion from the International Monetary Fund (IMF) upon finalizing a staff-level agreement, expected by the end of April 2025.

Progress in Negotiations:

  • An IMF delegation, led by Mission Chief Nathan Porter, conducted in-person discussions with Pakistani authorities from February 24 to March 14, 2025, focusing on the first review under the 37-month Extended Fund Facility (EFF) and a potential new arrangement under the Resilience and Sustainability Facility (RSF).
  • Porter noted that “significant progress” was made during these discussions, indicating a positive trajectory toward reaching a staff-level agreement.

Current Status:

  • Despite the advancements, a formal staff-level agreement has yet to be finalized. The IMF has acknowledged Pakistan’s strong program implementation but emphasized the need for further reforms, particularly in the tax and energy sectors.
  • Virtual discussions between the IMF and Pakistani authorities are ongoing to address outstanding issues and finalize the agreement.

Official Statements:

  • State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that there are no hurdles from the central bank’s side in reaching the agreement, suggesting that any remaining issues pertain to the federal government.

Implications of the Agreement:

  • Securing the staff-level agreement is crucial for Pakistan to access the next tranche of IMF funding, exceeding $2 billion. This financial support is vital for bolstering the country’s foreign exchange reserves and ensuring macroeconomic stability.​
  • The agreement is also expected to unlock additional financing from other multilateral and bilateral partners, further supporting Pakistan’s economic recovery efforts.