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IMF Approves Pakistan’s Economic Reviews, Releases $1.1 Billion Loan Tranche

Washington: The International Monetary Fund (IMF) has approved Pakistan’s latest economic reviews, praising the country’s economic reforms and policy implementation while noting that Pakistan managed to maintain economic stability despite tensions and conflict in the Middle East.

According to an official statement, the IMF Executive Board completed the third review under the Extended Fund Facility (EFF) program and the second review under the Resilience and Sustainability Facility (RSF).

Following the approval, Pakistan will immediately receive the next loan tranche of $1.1 billion. In addition, the country will receive $220 million in climate financing assistance.

The IMF stated that Pakistan has so far received a total of $4.8 billion under both programs.

In its statement, the IMF described Pakistan’s reform efforts and policy execution as strong, adding that the country witnessed improved GDP growth, controlled inflation, and a balanced current account.

The IMF further projected that Pakistan’s primary surplus for fiscal year 2026 is expected to remain at 1.6 percent of GDP.

According to the statement, Pakistan’s foreign exchange reserves reached $16 billion by December 2025.

The IMF also emphasized the need for Pakistan to further expand the tax net and improve tax collection mechanisms.

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