ISLAMABAD: The International Monetary Fund (IMF) Executive Board is expected to hold a meeting in December to consider the approval of the third tranche worth $1.2 billion for Pakistan under the Extended Fund Facility (EFF) program.
The IMF board session will deliberate on releasing the third installment of the financial support package aimed at stabilizing Pakistan’s economy.
In addition to this tranche, the board is also expected to approve an additional $200 million in climate financing.
Furthermore, these funds will be provided under the IMF’s Climate Resilience Financing initiative to help Pakistan strengthen its climate adaptation and mitigation efforts.
In this sense, the Ministry of Finance sources added that Pakistan and the IMF had successfully reached a staff-level agreement on October 15.
The agreement indicated a vital step toward the continuation of the ongoing financial assistance program. The agreement, the approval of the next tranche is now anticipated during the IMF’s December session.
Moreover, the release of the third installment will provide critical support to Pakistan’s external financing needs and strengthen the country’s foreign exchange reserves.
It will also help stabilize the national currency and reinforce the government’s ongoing economic reform agenda.
However, the economic analysts view the expected approval as a positive development, noting that timely disbursements from the IMF are crucial for maintaining investor confidence and ensuring fiscal discipline.
The inclusion of climate financing also reflects the IMF’s growing focus on supporting member countries facing climate-related vulnerabilities.
Meanwhile, Pakistan has been working closely with the IMF under the Extended Fund Facility to address macroeconomic imbalances, increase fiscal stability, and promote sustainable economic growth.
The government has confirmed its commitment to meeting reform targets, particularly in the areas of tax collection, energy sector management, and governance improvements.
