Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement (SLA) to release roughly $1.2 billion under two separate financial arrangements. This follows the successful completion of the third review of the Extended Fund Facility (EFF) and the second review of the Resilience and Sustainability Facility (RSF), according to an IMF statement issued on Saturday.

IMF officials held discussions with Pakistani authorities in Karachi and Islamabad from February 25 to March 2, but the talks initially ended without a final agreement. Negotiations later continued virtually, ultimately resulting in a breakthrough. The IMF confirmed that both sides had agreed on the required reviews under the EFF and RSF programmes. Pakistan’s Ministry of Finance also announced the development, noting progress in ongoing economic reforms and cooperation with the global lender.

IMF mission chief Iva Petrova stated that, subject to approval by the IMF’s executive board, Pakistan is expected to receive about $1.0 billion under the EFF and approximately $210 million under the RSF. She emphasized that the Pakistani government remains committed to maintaining disciplined macroeconomic policies to preserve recent economic stability.

Petrova further highlighted the importance of continuing structural reforms aimed at strengthening economic growth, improving fiscal management, and enhancing social protection systems. These measures are particularly important to shield vulnerable populations from the impact of fluctuating energy prices and economic pressures.

Pakistan joined the IMF’s $7 billion EFF programme in 2024 to stabilize its economy, rebuild market confidence, and reduce inefficiencies in the energy sector. In addition, the country secured a $1.4 billion RSF programme focused on climate resilience, disaster preparedness, water management, and promoting environmentally sustainable financing initiatives.