FX.co ★ Pakistan Secures IMF Staff-Level Agreement to Unlock USD 1.2 Billion Loan

The International Monetary Fund (IMF) announced on Tuesday that it has reached a staff-level agreement with Pakistan, setting the stage for USD 1.2 billion in new funding, subject to board approval. This agreement comprises USD 1 billion from the Extended Fund Facility and USD 200 million from the Resilience and Sustainability Facility, totaling approximately USD 3.3 billion in disbursements. The IMF emphasized that Pakistan's economic recovery remains on course, characterized by controlled inflation, stronger external financial reserves, and enhanced financial conditions, as reflected in the narrowing of sovereign spreads. Pakistan has committed to maintaining a stringent, data-driven monetary policy while enhancing its climate resilience, especially following recent flooding events. In related developments, Finance Minister Aurangzeb mentioned that Pakistan intends to re-enter the global capital markets, starting with the issuance of a yuan-denominated green bond by the end of the year, followed by an international bond offering of at least USD 1 billion.