IMF board to decide $1.2bn disbursement to Pakistan on December 8

The International Monetary Fund (IMF) has scheduled its executive board meeting for December 8 to approve the release of $1.2 billion to Pakistan, a move that could provide much-needed relief to the country’s struggling economy.

The funds will be disbursed under two ongoing programmes—the Extended Fund Facility (EFF) and the Resilience and Sustainability Fund (RSF).

Pakistan and the IMF had earlier reached a Staff-Level Agreement (SLA) on October 14, covering the second review of the $7 billion EFF and the first review of the $1.4 billion RSF.

Once approved, Islamabad will receive $1 billion under the EFF and $200 million from the RSF. The amount is expected to be credited to Pakistan’s central bank by December 9, bringing total inflows from the two arrangements to around $3.3 billion.

Report on governance reforms due before meeting

Before the IMF board’s approval, Pakistan is expected to release a long-pending Governance and Corruption Diagnostic (GCD) Assessment Report, which was prepared by the IMF’s technical mission earlier this year.

The report is a key condition under the EFF and aims to evaluate and strengthen governance mechanisms across government institutions.

Officials said the publication of the report has faced repeated delays due to technical disagreements and data validation issues between the IMF and Pakistani authorities. After several rounds of revisions, Islamabad has now committed to make the report public before the December 8 meeting.

The GCD report draws input from several national bodies, including the judiciary, National Accountability Bureau, Federal Board of Revenue (FBR), Auditor General of Pakistan, and the State Bank. It highlights weaknesses in financial transparency, tax compliance, and public asset disclosures, areas long criticised for fostering corruption.

Currently, many senior officials are not required to disclose their assets or those of their families, creating gaps in accountability. Several regulatory and oversight institutions also remain exempt from such transparency requirements.

The IMF has urged Pakistan to adopt data-based mechanisms, due diligence processes, and clear safeguards to prevent misuse of public resources.

Economy showing signs of recovery

The IMF acknowledged that Pakistan has made progress on key financial reforms under the EFF, citing a current account surplus for the first time in 14 years and improved fiscal discipline. Inflation has slowed, foreign reserves have strengthened, and investor confidence has improved.

However, the fund warned that last year’s floods, which displaced millions and damaged farmlands, continue to weigh on growth prospects. It noted that Pakistan remains highly vulnerable to climate-related shocks, urging the government to strengthen its climate resilience while maintaining prudent economic policies.