IMF Approves Immediate Release of USD 1.1 Billion Loan Tranche for Pakistan

IMF approves $1.1 billion for Pakistan, stressing tough measures for economic recovery. The disbursal completes the second and final review of Pakistan's economic reform program. IMF urges Pakistan to maintain sound macroeconomic policies and reforms for sustainable growth. External support and structural reforms are crucial for long-term growth and job creation. Priorities include SOE reform, governance and anti-corruption strengthening, and climate resilience.

The International Monetary Fund has approved an immediate disbursal of USD 1.1 billion to Pakistan as part of a bailout package and said the country needs to take tough measures to bring its economy back on track.

A decision in this regard was taken by the International Monetary Fund (IMF) Executive Board as it completed the second and final review of Pakistan's economic reform programme supported by the IMF's Stand-By Arrangement (SBA). With this development, the disbursements under the SBA reached around USD 3 billion.

IMF's Deputy Managing Director Antoinette Sayeh said, ''Given the significant challenges ahead, Pakistan should capitalize on this hard-won stability, persevering -- beyond the current arrangement -- with sound macroeconomic policies and structural reforms to create stronger, inclusive, and sustainable growth.'' Continued external support will also be critical, she said.

Achieving strong, long-term inclusive growth and creating jobs require accelerating structural reforms and continued protection of the most vulnerable through an adequately-financed Benazir Income Support Program, the IMF official said.

Priorities include advancing the reform of state-owned enterprises (SOEs) and ensuring that all SOEs fall under the new policy framework, strengthening governance and anti-corruption institutions, and continuing to build climate resilience, she added.

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