IMF approves $1.21 billion loan tranche for Pakistan

The Executive Board of the International Monetary Fund (IMF) on Friday approved the next tranche of loan for Pakistan, according to sources familiar with the development.

Sources said the IMF Executive Board approved both pending reviews under the loan program, paving the way for the immediate disbursement of $1.21 billion to Pakistan.

The approval is being seen as a major boost for Pakistan’s economy as the country continues efforts to stabilise its financial position and strengthen foreign exchange reserves.

According to sources, Pakistan reaffirmed its commitment to the reform agenda agreed under the IMF program. The reforms include measures aimed at improving fiscal discipline, broadening the tax base, enhancing energy sector performance and ensuring macroeconomic stability.

The IMF support is expected to help Pakistan maintain economic stability and restore investor confidence while continuing structural reforms under the ongoing financial assistance program.