Pakistan, IMF to Begin Talks on $1 Billion Loan Tranche This Month
Pakistan and the International Monetary Fund (IMF) are preparing to start negotiations for the release of the next $1 billion loan installment under the Extended Fund Facility (EFF) later this month, official sources confirmed.
According to the Ministry of Finance, an IMF delegation will arrive in Pakistan on September 25 to begin discussions on the second economic review. Preparations are already underway, with the ministry finalizing key economic data to be shared during the talks.
If the review is successfully completed, the IMF Board is expected to grant approval, after which Pakistan will receive the much-needed $1 billion tranche.
Background of the IMF Program
The ongoing program is a 37-month, $7 billion EFF agreement, signed in September 2024. So far, Pakistan has already secured over $2 billion in two installments.
Climate Financing Support
In addition to the EFF program, Pakistan and the IMF have also finalized a climate financing package, under which the country will receive $1.3 billion over 28 months. This funding is aimed at helping Pakistan tackle climate-related challenges and support sustainable development initiatives.
