Pakistan is currently navigating a complex economic landscape under a $7 billion loan agreement with the International Monetary Fund (IMF), approved in September 2024. The program aims to stabilize the country's economy through structural reforms and fiscal consolidation. Recent Developments As of May 2025, the IMF has completed the first review of Pakistan’s Extended Fund Facility (EFF) arrangement, leading to the immediate disbursement of approximately $1 billion. This brings total disbursements under the arrangement to about $2.1 billion. Additionally, the IMF approved Pakistan's request for an arrangement under the Resilience and Sustainability Facility (RSF), granting access to around $1.4 billion to support climate resilience efforts . New Conditions Imposed The IMF has introduced 11 new conditions that Pakistan must meet to access the next tranche of funds. These conditions include: Parliamentary approval of a new Rs 17.6 trillion budget. Increased debt ser...
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