The International Monetary Fund’s Executive Board on Monday approved the disbursement of $1.2 billion for Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).
The clearance unlocks about $1.2 billion, roughly $1 billion under the EFF and $200 million through the RSF.
An IMF team, led by Iva Petrova, held discussions during September 24-October 8, 2025, mission to Karachi and Islamabad, and in Washington, DC, for the second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).
On October 15, the Fund stated that the Pakistani authorities and IMF staff have reached a staff-level agreement on the second review under Pakistan’s EFF and the first review under RSF.
The board approval follows the release of the IMF’s Governance and Corruption Diagnostic Assessment, which identified systemic governance gaps and said Pakistan could raise growth by up to 6.5% over five years if it implements a 15-point reform plan.
IMF board expected to approve $1.2bn tranche for Pakistan by ‘early December’, says Aurangzeb
The findings prompted opposition calls for investigations into alleged governance failures. Khyber Pakhtunkhwa Chief Minister Mohammad Sohail Afridi also sought accountability, saying the report raised “grave questions” about the use of public resources and the diversion of funds abroad.
Finance Minister Muhammad Aurangzeb said the diagnostic should accelerate long-overdue reforms, adding that several recommendations were already being implemented.
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