Business & Finance

IMF Staff Deal with Pakistan Could Unlock $1.21 Billion in Financing

By Reuters

The International Monetary Fund announced on Wednesday, October 7, 2026, that it has reached a staff‑level agreement with Pakistan on reviews of some of its lending programs. If the IMF Board approves the deal, Pakistan could receive about $1.21 billion in new financing. This would include roughly $1 billion under the Extended Fund Facility (EFF) and $210 million under the climate‑focused Resilience and Sustainability Facility, bringing total disbursements under the two programs to around $5.7 billion. Pakistan continues to rely on external financing to strengthen foreign‑exchange reserves and meet debt repayments. The EFF has helped the authorities navigate the impact of the West Asia conflict, and strong policies have helped preserve macroeconomic stability, the fund said. However, risks remain elevated due to geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions. Pakistan is the most vulnerable major Asia‑Pacific economy to a prolonged West Asia conflict, given its dependence on Gulf energy imports, remittances and financing support from the region, Ahmad Mobeen, principal economist at S&P Global Market Intelligence, said earlier this year.