The IMF and Pakistan reached a staff-level agreement on October 7 for about $1.2 billion in fresh funding. The deal covers the fourth review of Pakistan's $7 billion Extended Fund Facility (EFF) and the third review of its $1.4 billion Resilience and Sustainability Facility (RSF). The IMF Executive Board still has to approve it. The Fund wants Islamabad to end its fuel subsidy scheme soon.
What the Deal Covers
An IMF team led by Iva Petrova held talks in Karachi and Islamabad from September 23 to October 7. The mission also wrapped up the 2026 Article IV consultation.
Finance Minister Muhammad Aurangzeb met Petrova at the Q Block in Islamabad once the talks closed. Finance Secretary Imdad Ullah Bosal and IMF Resident Representative Mahir Binici also attended, the Ministry of Finance said on X.
Once the board clears the deal, Pakistan gets about $1 billion under the EFF and $210 million under the RSF. Total payouts under both programs would then reach about $5.7 billion.
