The IMF Executive Board will meet on December 8 to approve $1.2 billion in loans to Pakistan. The funding includes $1 billion under the Extended Fund Facility and $200 million under the Resilience and Sustainability Facility. Officials say approval could unlock the disbursement as early as December 9.
The loans follow a staff-level agreement reached in October after talks in Karachi, Islamabad, and Washington. Negotiations focused on fiscal performance, monetary policy, structural reforms, and climate-related initiatives. The IMF praised Pakistan’s progress in inflation control, fiscal consolidation, and external buffers.
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Structural reforms include state-owned enterprises, energy-sector improvements, competition, and public-service delivery. Progress under the RSF-supported climate agenda was also acknowledged, including disaster resilience and water management enhancements. Recent floods have made these reforms more urgent.
Ahead of the Board meeting, the IMF released its Governance and Corruption Diagnostic Assessment. It highlighted systemic corruption in state institutions and recommended a 15-point reform agenda to boost transparency and fairness. Officials said implementing these reforms could increase economic growth by 5–6.5 percent over five years.
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Finance Minister Muhammad Aurangzeb called the report a catalyst for reform, not criticism. The government remains committed to completing the remaining recommendations to sustain Pakistan’s economic recovery and reinforce investor confidence.