Pakistan is set to receive a major boost to its foreign exchange reserves as the International Monetary Fund (IMF) Executive Board schedules a review of the country’s ongoing loan programs on December 8. According to Bloomberg News, the board will conduct the second review under the 37-month Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF). The outcomes of this meeting are expected to unlock approximately $1.2 billion in critical financing for Pakistan, with $1 billion coming from the EFF and an additional $200 million under the RSF.
The scheduled disbursement comes as part of Pakistan’s broader engagement with the IMF, following a staff-level agreement finalized last month in October 2025. The country has been steadily rebuilding its foreign exchange reserves amid ongoing economic challenges, and this tranche of funding is expected to provide crucial liquidity support. Officials note that the funding will help stabilize balance-of-payments pressures, strengthen foreign reserves, and support ongoing macroeconomic management efforts across the country.
Ahead of the board meeting, Pakistan has completed several key prior actions required under the loan programs. Most notably, the government recently published the Governance and Corruption Diagnostic Assessment (GCDA), a report designed to identify systemic vulnerabilities and corruption risks across state institutions. This publication was a mandatory condition set by the IMF, aiming to promote institutional transparency and strengthen governance frameworks. Analysts suggest that the GCDA provides a benchmark for institutional reforms, offering a roadmap for mitigating structural weaknesses in public sector management and accountability mechanisms.
The IMF Executive Board review will assess Pakistan’s adherence to agreed-upon reforms and program targets, including fiscal consolidation, governance improvements, and structural measures to enhance economic resilience. Observers highlight that successful approval could not only unlock the immediate $1.2 billion tranche but also reinforce international investor confidence in Pakistan’s policy trajectory. The disbursement under both EFF and RSF programs is seen as an important step toward improving liquidity, supporting public sector obligations, and facilitating ongoing policy reforms designed to stabilize the economy.
Economists note that the combination of financial support and ongoing institutional reforms is expected to strengthen Pakistan’s macroeconomic stability while enabling targeted interventions to improve governance, transparency, and regulatory efficiency. The government and IMF maintain that continued adherence to program conditions will be critical for sustaining long-term economic resilience, reducing vulnerability to external shocks, and enabling the country to achieve sustainable growth.
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