Pakistan has received a $1.2 billion loan tranche from the International Monetary Fund (IMF), which has been deposited into the State Bank of Pakistan’s Account No. 1, according to officials of the Ministry of Finance.
The transfer follows the IMF’s approval of the disbursement on Dec. 8, granted after the latest review of Pakistan’s economic performance under the ongoing loan program, the officials said.
The inflow is expected to bolster Pakistan’s foreign exchange reserves, strengthen the country’s balance-of-payments position and ease pressure on the economy as it continues to navigate external financing needs.
Pakistan has been dependent on IMF support to stabilize its economy following years of low growth, high inflation, and foreign exchange shortages. In 2023, the country entered into a short-term Stand-By Arrangement (SBA) with the IMF aimed at restoring macroeconomic stability, implementing fiscal adjustments, and advancing structural reforms.
The $1.2 billion tranche is part of a broader financing package designed to help Pakistan meet its debt obligations, support the currency, and rebuild investor confidence. Previous disbursements under the program came after the government implemented policy measures including fiscal tightening, market-based exchange rates, reductions in energy subsidies and steps to expand tax revenue.
Economists say the latest inflow will provide short-term relief, but Pakistan will still need deeper reforms and sustainable external financing to achieve long-term economic stability.