The International Monetary Fund (IMF) has placed Pakistan on the agenda of its Executive Board meeting scheduled for December 8, 2025, signaling a key step in the country’s ongoing engagement with the global lender. The Board is expected to deliberate and approve the release of the next $1.2 billion tranche, encompassing the second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF), according to the IMF’s updated website.
Last month, an IMF team reached a staff-level agreement (SLA) with Pakistani authorities in Washington DC, following the second review of Pakistan’s economic program under the EFF. The agreement outlines conditionalities and macroeconomic targets agreed upon by both sides, paving the way for the disbursement of funds pending formal approval by the Executive Board.
Upon the IMF Board’s approval, Pakistan is expected to receive a disbursement of approximately $1 billion (SDR 760 million) under the EFF and around $200 million (SDR 154 million) under the RSF. This will increase total disbursements under the two programs to roughly $3.3 billion, providing much-needed support to stabilize the country’s fiscal and external accounts.
Finance Minister Muhammad Aurangzeb confirmed that the IMF Executive Board’s approval is anticipated in early December, describing the decision as largely procedural given the prior staff-level agreement. Speaking at the 9th Edition of The Future Summit, titled ‘Course Correction: Redefining The Direction,’ Aurangzeb emphasized that the IMF tranche would support Pakistan’s ongoing economic reform agenda and provide liquidity to manage external obligations and government expenditure.
While the Board approval is generally considered a formality following the SLA, it has attracted considerable attention, reflecting the broader significance of IMF funding in maintaining investor confidence and macroeconomic stability in Pakistan. Observers note that the tranche will support the government’s efforts to meet fiscal targets, manage public debt, and strengthen foreign exchange reserves.
The release of the funds under the EFF and RSF is also expected to have a stabilizing effect on the domestic financial markets, ensuring smoother liquidity conditions for both the government and private sector. Analysts point out that the IMF’s continued engagement signals international confidence in Pakistan’s economic reform measures and its commitment to structural adjustments.
Pakistan’s participation in the RSF, in particular, marks a strategic approach to enhance economic resilience and sustainability, focusing on reforms that improve fiscal consolidation, social protection, and climate adaptation initiatives. Combined with EFF support, these funds are critical for managing short-term financing gaps while ensuring long-term fiscal sustainability.
As the December 8 Board meeting approaches, all eyes remain on the IMF’s formal approval, which will unlock the next tranche and reinforce Pakistan’s ongoing engagement with the international financial community. The tranche is anticipated to provide both immediate fiscal relief and continued momentum for reform implementation across the country’s economic and financial systems.
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