Secures $1.2 Billion Package
Secures $1.2 Billion Package: Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement after reviewing two financial programs. The IMF board still needs to approve it. If approved, Pakistan will receive $1.2 billion — $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF). This will raise the total funds Pakistan gets under these programs to $3.3 billion.
Pakistan Secures Deal
The IMF held talks with Pakistan from September 24 to October 8 in Karachi, Islamabad, and Washington, DC. The IMF said Pakistan’s economy is improving. Inflation is under control. The government is spending carefully. Financial conditions have improved. Pakistan’s current account showed a surplus for the first time in 14 years. This means the country earned more from trade than it spent.
But Pakistan still faces serious problems. Recent floods hurt around 7 million people. Over 1,000 people died. The floods destroyed homes, roads, and farmland. The damage has slowed the economy. The IMF expects Pakistan’s economy to grow by 3.25 to 3.5 percent in 2026.
Flood Relief Efforts
To stay on track, Pakistan promised to improve its budget and raise more taxes. The government moved funds to help flood victims. It also plans to improve the Benazir Income Support Programme (BISP), which helps poor families. Health and education spending will increase. The State Bank of Pakistan will keep using a careful policy to control inflation. The bank expects inflation to stay between 5 and 7 percent. If prices rise too much, it will take action.
The government also plans energy reforms. It will adjust electricity prices on time, cut circular debt, upgrade the power system, and sell weak government power plants. Pakistan is working on long-term reforms. It wants to help businesses grow and reduce government control in markets. It also plans to make trade easier by changing tariffs.
Stronger Economy
Pakistan is also focusing on climate goals. It wants to manage water better, prepare for disasters, and support clean transportation. Finance Minister Muhammad Aurangzeb said these reforms could help Pakistan grow faster, like East Asian countries did in the past. He said Pakistan is moving away from protecting weak industries and toward building a stronger, more open economy. He added that global rating agencies have improved Pakistan’s outlook, showing trust in its reform plans.
Published in Dawn, 16th October 2025
