Islamabad:A staff-level agreement for a 1.2 billion dollar tranche in two programs has been reached between Pakistan and International Monetary Fund (IMF). Upon approval Pakistan will get one billion dollars under the 4th Review of Extended Fund Facility (EFF) and about 210 million dollars under the Resilience and Sustainability Facility (RSF) (RSF). Total amount under the two arrangements will stand at about 5.7 billion dollars.

According to IMF, Pakistan maintained overall economic stability despite difficult regional and global situation and Middle East conflict. The GDP growth rate of Pakistan remained 4 percent in the first 9 months of 2026 while the GDP growth rate is estimated to remain 3.6 percent in the entire year.

The inflation ratio subsided by 10.3 percent after reaching the highest level in the month of May. According to IMF Pakistan current account remained balanced due to robust increase of remittances. The foreign exchange reserves reached 21 billion 50 crore dollars by the end of September.

Improvement in sovereign credit rating and access to international financial markets again was declared sign of trust on economic policies. Geographical tension, fluctuation in the prices of energy , sternness in global fiscal situation and trade impediments are major threats for economy.

IMF has said Pakistan should pursue the target of basic primary surplus of 2 percent of GDP in the budget for the financial year 2027 while maintaining fiscal discipline.

Tax system be made easy and business friendly. Use of digital invoicing, audit and third party data be enhanced in tax recovery system.

IMF declared increase in expenses on health and education vital which were raised from 2.2 percent of GDP in financial year 2024 to 2.5 percent in the current financial year. Target has been fixed for taking it to 2.8 percent in financial year 2027.

With the proposal of increasing financial assistance in cash for low income segments of society, the IMF has stressed on abolishing fuel subsidy soon being provided at large scale. IMF said if oil prices rise in future extraordinarily then the financial assistance should be restricted to only deserving and marginalized sections of society.

State bank was advised to increase foreign exchange reserves. IMF has said Pakistan has made advancement overall towards economic stability. However continuing reforms process is indispensable in the face of inflation, energy prices, loans and uncertain regional and global situation.