IMF executive board likely to approve $1.2B loan for Pakistan today

ISLAMABAD: The International Monetary Fund (IMF) Executive Board is set to convene today to approve the next installment of financial assistance for Pakistan, a crucial step in the country’s ongoing efforts to stabilise its economy.

Sources confirmed that the meeting, scheduled for December 8, will finalise a $1.2 billion disbursement to Pakistan. The package will consist of $1 billion under the IMF’s ongoing loan program, along with an additional $200 million in climate financing to support Pakistan’s environmental resilience initiatives.

This move follows a staff-level agreement reached between Pakistan and the IMF on October 14, 2025. According to the IMF, Pakistan has successfully met all the required conditions for the release of this installment, which is part of the larger $102 billion loan package aimed at bolstering the country’s economic recovery.

The approval of the $1.2 billion installment is seen as a significant step in supporting Pakistan’s fiscal reforms and addressing its mounting financial challenges. As the country grapples with economic instability, the loan will provide much-needed liquidity and bolster efforts to meet climate goals, amid ongoing environmental pressures.

Pakistan’s government has welcomed the IMF’s commitment, stating that the financial support will play a vital role in ensuring the country remains on track with its development objectives, particularly in terms of climate adaptation and energy sustainability.

The approval comes at a critical time for Pakistan, which has been navigating both economic challenges and climate-related disasters. The funds will provide an important cushion for the country’s financial system and help stabilize its foreign exchange reserves.