The International Monetary Fund (IMF) Executive Board will meet on December 8 to consider and approve a $1.2 billion disbursement for Pakistan, following a staff-level agreement reached in October after extensive talks in Karachi, Islamabad, and Washington.
The upcoming review covers two components: nearly $1 billion under the Extended Fund Facility (EFF) and about $200 million under the Resilience and Sustainability Facility (RSF). Once approved, the funds are expected to be released as early as the following day. The IMF confirmed the meeting date through an official announcement, and the Board’s agenda also lists Pakistan’s loan programmes for review.
During negotiations led by IMF mission chief Iva Petrova, discussions focused on Pakistan’s fiscal consolidation efforts, monetary policy stance, structural reforms, and progress on climate-related commitments. The IMF earlier acknowledged Pakistan’s “strong progress” in reducing inflation, strengthening external buffers, and maintaining a tight monetary policy — crediting the State Bank of Pakistan for helping anchor inflation expectations.
The Fund also noted Pakistan’s continued commitment to reforms in state-owned enterprises, energy-sector viability, competition, and public-service delivery. Under the RSF, the IMF highlighted improvements in climate resilience, water-resource management, and climate-information systems — areas of increased importance following recent devastating floods.
The expected approval is seen as a key confidence booster for investors at a time when Pakistan is working to stabilise its economy amid external pressures and the lingering impact of flood damage. Islamabad remains under pressure to sustain fiscal discipline, advance energy-sector reforms, and strengthen revenue mobilisation to maintain long-term stability.
However, the IMF reiterated that risks to the outlook remain elevated. Flood-related losses have tempered recovery prospects, while the Fund emphasised the need for monetary policy to remain “appropriately tight and data-dependent” to keep inflation within target. It also underscored the importance of consistent implementation of reforms to improve productivity, strengthen competition, enhance public services, and address vulnerabilities in the energy sector.
Governance Report Ahead of Board Meeting
Ahead of the review, the IMF released its Governance and Corruption Diagnostic Assessment (GCDA) — a precondition for Executive Board approval. The report highlighted persistent corruption challenges stemming from systemic institutional weaknesses and proposed a 15-point reform agenda to improve transparency and integrity.
According to the IMF, implementing these reforms within the next three to six months could boost Pakistan’s economic growth by 5 to 6.5 percent over five years. The report sparked criticism from opposition parties, who called it evidence of “the worst financial scandal in Pakistan’s history.”
Finance Minister Muhammad Aurangzeb dismissed these claims, describing the GCDA as “not criticism” but a roadmap to accelerate overdue reforms. He said the assessment acknowledged important progress in taxation and governance, adding that many of its recommendations were already under implementation. The government, he stressed, is committed to executing the remaining reforms as part of Pakistan’s broader institutional transformation aimed at sustaining economic recovery.
Story by Anwar Iqbal
