The International Monetary Fund (IMF) announced it has reached a staff‑level agreement with Pakistan on reviews of its lending programs, potentially unlocking $1.21 billion in financing, pending board approval.

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If approved, Pakistan will gain access to about $1 billion under the Extended Fund Facility (EFF) and $210 million under the climate‑focused Resilience and Sustainability Facility (RSF). Together, these disbursements would bring Pakistan’s total under the two programs to nearly $5.7 billion.

The deal comes at a critical time for Pakistan, which continues to grapple with economic instability, high inflation, and climate‑related challenges. Analysts say the IMF’s support could provide much‑needed relief for the country’s struggling economy, while also reinforcing reforms aimed at fiscal discipline and sustainable growth.

The IMF emphasized that the agreement reflects progress in Pakistan’s efforts to stabilize its economy and strengthen resilience against climate shocks. For Islamabad, the deal offers both financial breathing space and international confidence, as the country works to balance debt obligations with development priorities.

Approval by the IMF’s executive board is expected in the coming weeks, marking a significant milestone in Pakistan’s ongoing engagement with the Fund.