The IMF staff-level agreement with Pakistan on the fourth review of the $7 billion Extended Fund Facility (EFF) will unlock about $1.2 billion, ARY News reported on Thursday.
Of the total, roughly $1 billion comes under the EFF and $210 million through the Resilience and Sustainability Facility (RSF). The deal still requires approval from the IMF’s Executive Board.
The Fund said Pakistan’s programme remained broadly on track despite pressures including the Middle East conflict. It estimated GDP growth at 3.6% in FY2026, said inflation peaked in May 2026, and noted that strong remittances helped keep the current account deficit under control.
The IMF urged a gradual phase-out of the Prime Minister’s petrol subsidy, saying it should be limited to eligible beneficiaries and not expanded. It also called for continued energy-sector reforms, including better recovery of dues, lower production costs, higher gas revenue collection and reduced losses in the gas sector.
On social spending, the Fund said health and education outlays remain below target at 2.2% of GDP in FY2025 and 2.5% in FY2026. It is seeking 2.8% of GDP for FY2027.
The staff-level agreement is a key step in the programme cycle. Once the Executive Board gives its approval, the funds can be released to Pakistan, which would help support the external position and market confidence.
Source: ARY News
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