Pakistan and IMF strike $1.2B deal

Pakistan has reached an agreement with the International Monetary Fund to secure an additional $1.2 billion in funding to support its economy amid rising inflation and challenges related to the repercussions of the Middle East conflict. The agreement includes reviews of the Extended Fund Facility and the Standby Arrangement, pending approval from the IMF's Executive Board. Despite the challenges, Pakistan has maintained macroeconomic stability, with growth reaching 3.6% in the fiscal year 2026, and inflation decreasing to 10.3% in September, while reserves increased to $21.5 billion. Pakistan's debt to the IMF amounts to approximately $10.8 billion, within the framework of previously agreed economic support programs aimed at enhancing economic stability, financial sector reforms, and energy sector improvements.

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