Islamabad, Pakistan – Web Desk: The International Monetary Fund (IMF) is expected to approve a $1.2 billion tranche for Pakistan today as part of its ongoing Extended Fund Facility programme, according to official sources.
The IMF Executive Board is scheduled to meet today, where it will review Pakistan’s third economic assessment and consider the release of approximately $1.2 billion in the next installment of financial support.
Sources said Pakistan has already fulfilled key conditions required under the IMF programme, paving the way for approval of the latest tranche under the loan arrangement.
Officials added that the board is also expected to review the second assessment under the Resilience and Sustainability Facility (RSF), a programme focused on climate-related financing and long-term economic stability. Pakistan had reached a staff-level agreement with the IMF on March 27 this year.
According to the Ministry of Finance, petroleum levy collections may exceed the target of 1,468 billion rupees, while the government is also considering further adjustments to the levy structure.
The IMF has reportedly urged Pakistan to reduce or phase out subsidies in the energy and other key sectors as part of broader fiscal reforms.
Government sources said inflation has eased and key macroeconomic indicators have shown improvement, although external risks remain due to ongoing geopolitical tensions in the Middle East.
Pakistan has also assured the IMF of its commitment to maintaining fiscal discipline and implementing structural reforms.
In addition, the country may receive around $200 million under the RSF programme, linked to climate resilience initiatives.
Discussions at recent global financial meetings in Washington also highlighted increased focus on climate financing for developing countries. Pakistan has presented its position on climate action funding and budget priorities, signaling greater emphasis on climate policy in upcoming national budgets.
