Pakistan receives a $1.2 billion IMF loan, boosting its reform programme as inflation falls and growth is projected to rise, though further overhauls are urged.
ISLAMABAD: Pakistan has secured a further $1.2 billion in loans from the International Monetary Fund.
The IMF approved the funds on Monday, bringing the total provided under two loan facilities to $3.3 billion.
The fund’s deputy managing director Nigel Clarke said Pakistan’s reform implementation had helped preserve macroeconomic stability.
Economic growth is projected to rise to 3.2% in the fiscal year to June 2026.
Inflation is set to average 6.3% this fiscal year, a sharp drop from 23.4% in the year to June 2024.
Clarke also called for further overhauls and privatisations of state-owned firms.
He urged continued investment in climate projects to reduce vulnerability to extreme weather.
New efforts to combat endemic corruption are also needed, Clarke said.
Prime Minister Shehbaz Sharif called the new loans proof that Pakistan is implementing necessary steps for stability.
“Bringing the country back from the brink of default and putting it on the path of stability and development was a difficult phase,” he said.
Pakistan nearly defaulted on its massive debt in 2023 before securing the IMF bailout.
The Extended Fund Facility is to total $7 billion in the coming years.
As part of the deal, Pakistan pledged to tackle corruption including money-laundering.
An IMF review in November found persistent and widespread corruption risks in the state-dominated economy.
It urged actions to advance the rule of law and the functioning of anti-corruption institutions.
Pakistan is one of the largest debtors to the IMF after Argentina and Ukraine.
It also secured a 10-year, $20 billion financing package from the World Bank in January.
