Pakistan likely to receive $1.2bn next month as IMF board to meet on Dec 8

The International Monetary Fund (IMF) has scheduled an Executive Board meeting for December 8 to approve the disbursement of $1.2 billion to Pakistan under two concurrent programmes, with funds expected to land on December 9.

The tranche comprises $1 billion under the $7 billion Extended Fund Facility (EFF) and $200 million under the $1.4 billion Resilience and Sustainability Fund (RSF). The release follows a Staff-Level Agreement (SLA) reached on October 14 covering the EFF’s second review and the RSF’s first review. Upon approval, total disbursements under the two arrangements will rise to about $3.3 billion.

An IMF team led by Iva Petrova held discussions in Karachi and Islamabad from September 24 to October 8, and in Washington, DC, to conclude the SLA.

The Fund cited strong programme implementation and priorities that include sustaining the fiscal effort while supporting flood-affected households, keeping inflation durably within the State Bank of Pakistan’s target range, restoring the energy sector’s viability, and advancing structural reforms.

The IMF also said the RSF-backed climate agenda is progressing, noting that recent floods highlight the need for consistent, comprehensive reforms to reduce climate risk.

Governance diagnostic and reforms

Ahead of the Board meeting, the IMF is pressing Pakistan to publish and act on its Governance and Corruption Diagnostic (GCD) report.

Recommendations include making the Special Investment Facilitation Council fully transparent, creating a central registry of state-owned land and holding entities, conducting performance assessments of judges, publishing asset declarations of bureaucrats, and removing the Finance Secretary from the State Bank of Pakistan’s (SBP) board.

While the Finance Ministry cannot legally block publication, it has repeatedly delayed releasing the report, which was originally due by the end of July and has since seen multiple extensions. The report must be published ahead of the Board meeting that will determine the $1.2 billion disbursement.

Upon approval, the disbursement will bolster external buffers while supporting the programme priorities outlined in the SLA, fiscal discipline, inflation management within the SBP target range, restoring energy-sector viability, advancing structural reforms, and progress on the RSF-backed climate agenda.