IMF Executive Board to consider $1.2bn disbursement to Pakistan on Dec 8

ISLAMABAD: The International Monetary Fund’s (IMF) Executive Board will meet on December 8 to approve the release of $1.2 billion in financing for Pakistan, the Fund confirmed on Friday.

The pending approval follows a staff-level agreement reached in October after extensive discussions between IMF officials and Pakistani authorities in Karachi, Islamabad and Washington from Sept 24 to Oct 8.

If approved, Pakistan will receive:

• ~$1 billion under the Extended Fund Facility (EFF)

• ~$200 million under the Resilience and Sustainability Facility (RSF)

Authorities expect the disbursement to be made as early as Dec 9.

What the IMF says? 

In its recent assessments, the IMF noted that Pakistan has made “strong progress” in:

• fiscal consolidation,

• reducing inflation,

• rebuilding external buffers, and

• maintaining a tight monetary policy through the State Bank of Pakistan (SBP).

The Fund praised progress on structural reforms, particularly in:

• state-owned enterprises (SOEs),

• energy-sector viability,

• competition,

• public service delivery, and

• the climate agenda under the RSF.

Pakistan’s climate-focused reforms — prompted by devastating floods in recent years — include improvements in water management, climate-information systems, and disaster resilience.

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However, the IMF cautioned that economic risks remain high, emphasising:

• the need to keep monetary policy tight,

• accelerate energy-sector reforms,

• strengthen revenue mobilisation, and

• ensure consistent implementation of long-term structural reforms.

GCDA report released ahead of Board meeting

Ahead of the Executive Board review, the IMF released its Governance and Corruption Diagnostic Assessment (GCDA) — a requirement for board approval.

Key points include:

• The report highlights systemic weaknesses in Pakistan’s governance and institutions.

• It proposes a 15-point reform agenda, urging immediate implementation.

• IMF estimates Pakistan could add 5–6.5% growth over five years if reforms begin within the next 3–6 months.

Opposition parties called the findings evidence of the “worst financial scandal” in Pakistan’s history and demanded an inquiry.

However, Finance Minister Muhammad Aurangzeb dismissed the criticism, calling the GCDA “a catalyst for long-overdue reforms”. He said many of the recommended actions were already under way, and the government is committed to implementing the rest as part of its broader institutional reform agenda.