ISLAMABAD: The International Monetary Fund (IMF) has reported that Pakistan’s economy has performed better this year than initially anticipated despite encountering obstacles like floods and increased food costs.
The IMF’s recent report on Pakistan’s economic condition states that the nation has largely achieved the goals specified in its loan agreement, showing marked progress in economic results.
The report emphasizes that, notwithstanding circumstances such as the catastrophic floods, Pakistan’s economy has stayed steady. It also points out that the fiscal results have been robust with a primary surplus of 1.3% attained, matching the IMFs goal.
The IMF also declared the authorization of a $1.3 billion payout to Pakistan as part of the loan arrangement delivering economic assistance.
Although the floods have led to an increase in food costs the IMF forecasts that inflationary effects will be temporary. The nation’s foreign currency reserves have increased from $9.4 billion to $14.5 billion over the year with additional expansion anticipated in the years ahead.
The report additionally highlighted that robust economic strategies have aided Pakistan in bouncing from recent disruptions. While the latest floods have hindered the nation’s economic growth outlook, for the coming year Pakistan’s economy has exceeded performance this year.
The IMF noted that the ongoing programs are moving in the right direction and stated that Pakistan has already received a $1.2 billion disbursement under both of its loan programs.
Pakistan secures $1.2bn IMF tranche, confirms SBP
The State Bank of Pakistan (SBP) has received approximately US$1.2 billion through the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programs.
According to a statement on the SBP’s website, the IMF Executive Board completed its second review under the EFF during a meeting held on December 8, 2025, and approved the disbursement of SDR 760 million for Pakistan. Additionally, the IMF Executive Board sanctioned the first tranche of SDR 154 million under the RSF.
As a result, the SBP has received a total of SDR 914 million (equivalent to about US$1.2 billion) from the IMF under the EFF and RSF, with the funds being made available on December 10, 2025. This amount will be reflected in the SBP’s foreign exchange reserves for the week ending December 12, 2025.
