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Reuters. (2026, October 8). IMF reaches staff deal with Pakistan, potentially unlocking $1.2 billion. The Hindu. https://www.thehindu.com/news/international/imf-reaches-staff-deal-with-pakistan-potentially-unlocking-12-billion/article71558176.ece
Reuters. “IMF reaches staff deal with Pakistan, potentially unlocking $1.2 billion.” The Hindu, 8 Oct. 2026, https://www.thehindu.com/news/international/imf-reaches-staff-deal-with-pakistan-potentially-unlocking-12-billion/article71558176.ece.
Reuters. “IMF reaches staff deal with Pakistan, potentially unlocking $1.2 billion.” The Hindu, October 8, 2026. https://www.thehindu.com/news/international/imf-reaches-staff-deal-with-pakistan-potentially-unlocking-12-billion/article71558176.ece.
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In late October 2026, the International Monetary Fund (IMF) reached a staff-level agreement with Pakistan, setting the stage for a $1.2 billion disbursement to help bolster Pakistan's foreign exchange reserves and meet debt repayments. This amount would be divided into approximately $1 billion under the Extended Fund Facility (EFF) and $210 million under the Resilience and Sustainability Facility (RSF), bringing total disbursements under these programs to around $5.7 billion. The agreement, concluded during a two-week mission led by IMF staff member Ms Iva Petrova in Islamabad, is contingent upon approval from the IMF Executive Board, expected within four to five weeks.
The deal comes as Pakistan faces ongoing challenges due to its dependence on Gulf energy imports and volatile global financial conditions. Despite these risks, the IMF praised Pakistan's efforts to navigate the impact of geopolitical tensions in West Asia and maintain macroeconomic stability through robust fiscal policies. Key points of discussion included targeted gas subsidies for the poorest consumers via the Benazir Income Support Programme (BISP) starting January 2027.
The agreement marks a significant step towards stabilizing Pakistan’s economy amidst external pressures, with IMF officials highlighting progress in public financial management and efforts to reduce debt risks while developing the domestic government securities market.