Pakistan, IMF reach staff-level deal for $1.2 billion
The IMF staff-level agreement with Pakistan was announced on Wednesday, October 7, 2026, after talks concluded on the fourth review of the $7 billion Extended Fund Facility and the third review of the $1.4 billion Resilience and Sustainability Facility. Subject to approval by the IMF Executive Board, Pakistan would access about $1 billion under the EFF and $210 million under the RSF, taking total disbursements under the two programmes to roughly $5.7 billion.
IMF staff-level agreement: the key numbers
| Item | Detail |
|---|---|
| EFF tranche | ~$1 billion |
| RSF tranche | ~$210 million |
| Total on board approval | ~$1.21 billion |
| Total disbursements after release | ~$5.7 billion |
| Talks held | September 23 to October 7, 2026 |
| Mission chief | Iva Petrova |
The mission also concluded its Article IV consultations with Pakistan during the visit.
What the IMF praised and what it flagged
The Fund said Pakistan had “successfully navigated the impact of the Middle East conflict” with the EFF’s support, and that strong policies had helped preserve macroeconomic stability. It pointed to 4 per cent growth in the first three quarters of FY26 and foreign exchange reserves of $21.5 billion.
But the Fund kept its warnings intact. It said risks remain high because of geopolitical tensions, volatile energy prices, tighter global financial conditions and trade disruptions. It also called for the fuel support scheme to be phased out promptly.
Conditions still attached
Amendments to the laws governing state-owned enterprises have emerged as a key condition for the tranche. The IMF has designated the legislative changes as a prior action, with around nine to ten state institutions required to align their laws with the central SOE law by mid-November. The list includes the Port Qasim Authority, Gwadar Port Authority, Karachi Port Trust, State Life Insurance Corporation, National Bank of Pakistan and Pakistan Railways.
Pakistan has missed several deadlines on these reforms before, a point the IMF mission raised during the latest round of talks. The Finance Ministry has not confirmed whether the government has agreed to the condition.
Why this matters
Pakistan remains reliant on external financing to rebuild its foreign exchange reserves and meet debt repayments. S&P Global Market Intelligence has described Pakistan as the most vulnerable major Asia-Pacific economy to a prolonged Middle East conflict, given its dependence on Gulf energy imports, remittances and financing support from the region.
The board is expected to take up the agreement in four to five weeks, with Pakistani officials pointing to a meeting in late November.
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FAQs
How much will Pakistan get under the IMF staff-level agreement?
About $1.21 billion in total: roughly $1 billion under the Extended Fund Facility and $210 million under the Resilience and Sustainability Facility, subject to Executive Board approval.
When will the IMF board approve the tranche?
Approval is expected in four to five weeks, with Pakistani officials pointing to a board meeting in late November 2026.
What conditions has the IMF attached?
The main prior action is amending the laws of nine to ten state-owned enterprises to align with the central SOE law by mid-November. The Fund also wants the fuel support scheme phased out promptly.
