
A total of $1.2 billion is planned to be supported through the expanded financial system and recovery sustainability system.
AI-generated summary
Pakistan has received IMF financial support about 20 times since 1958 due to chronic economic difficulties and a lack of foreign currency.
“Successful management of the aftermath of the Middle East war…Maintaining macroeconomic stability”
(Hanoi = Yonhap News) Correspondent Park Jin-hyung = The International Monetary Fund (IMF) announced on the 8th (local time) that it has reached a working-level agreement to provide additional funding of approximately 1.6 trillion won to Pakistan.
If the IMF Board of Directors finally approves this agreement, Pakistan will receive $1 billion (about 1.34 trillion won) through its flagship loan program, the Expanded Finance Facility (EFF), and $210 million (about 282 billion won) through the Recovery and Sustainability Facility (RSF).
RSF is a new long-term fund established by the IMF in May 2022 to help countries vulnerable to climate change respond.
The cumulative amount of support Pakistan receives through these two programs amounts to $5.7 billion (approximately 7.66 trillion won).
The IMF evaluated that despite rising energy prices and supply chain disruptions, Pakistan has successfully managed the aftermath of the Middle East war based on EFF support and maintained macroeconomic stability thanks to strong policies.
As a result, Pakistan's foreign currency reserves increased to about $21.5 billion (about 28.9 trillion won) as of the end of last month. The IMF forecasts that the economic growth rate in fiscal 2026 will be 3.6%.
However, he pointed out that risks remain high due to geopolitical tensions, energy price volatility, deteriorating global financial conditions, and trade disruptions.
The IMF also said that Pakistan's Consumer Price Index (CPI) growth rate slowed to 10.3% last month after peaking in May, and recommended that the Central Bank of Pakistan should maintain an appropriately tight monetary policy stance to lower the inflation rate within the target range.
Pakistan has received financial support from the IMF about 20 times since 1958 due to chronic economic difficulties and foreign currency shortage.
In particular, with a high dependence on energy from the Middle East, the economy is under pressure due to a surge in oil and gas prices and supply disruptions due to the recent war with Iran.
AI outlook — possibilities, not facts
The IMF Board of Directors is expected to give final approval for funding support for the expanded financial system and recovery sustainability system.
Likely · Within weeks

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