IMF may release $1.2 billion to Pakistan by year-end

ISLAMABAD: The International Monetary Fund (IMF) is expected to hold its board meeting by December 2025 to approve the release of the next USD 1.2 billion tranche for Pakistan, following the country’s successful completion of all performance criteria under the ongoing loan programme.

State Bank of Pakistan (SBP) Governor Jameel Ahmed, during an analyst briefing after the Monetary Policy Committee (MPC) meeting on Monday, said that Pakistan has met every target required for the IMF review. “All performance benchmarks have been achieved, and we expect the IMF board to meet by December for approval,” he was quoted as saying by Topline Securities.

Stronger external position and improving remittances

Governor Ahmed shared that out of the USD 10 billion in total external repayments due for FY26, the country has already cleared USD 3.1 billion. The SBP now expects the current account deficit to remain modest, within the earlier projected range of 0 to 1 percent of GDP.

He added that the remittance outlook has strengthened, with inflows expected to exceed USD 41 billion during FY26, compared to USD 38 billion recorded last year. The improvement, according to the SBP, reflects the stability in exchange rates and better economic conditions in key host countries.

Central bank boosts reserves, maintains debt discipline

The SBP also disclosed that it has purchased over USD 20 billion from the open market during the past three years and continues to build reserves after meeting external payment needs. According to Insight Research, the central bank has revised its year-end foreign exchange reserves target to USD 17.8 billion, up from the earlier projection of USD 17.5 billion.

Governor Ahmed reaffirmed that Pakistan will continue to meet its external debt obligations on time, saying the central bank remains committed to maintaining financial stability.