IMF Agrees to $1.2 Billion Assistance Deal with Pakistan

October 9, Washington (Reuters/AFP) – The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistani officials to provide approximately $1.2 billion in financial assistance. This agreement will require approval by the IMF’s executive board before implementation.

IMF negotiator Eva Petrova highlighted improvements in Pakistan’s economy despite the ongoing conflicts in the Middle East, noting that stringent economic policies have helped maintain overall macroeconomic stability. She also pointed out that Pakistan’s fragile economy continues to face persistent pressures such as rising inflation, elevated energy prices, and supply disruptions.

According to the IMF, Pakistan’s real gross domestic product (GDP) grew by 4 percent during the first three quarters of fiscal year 2026, with an expected overall economic growth rate of 3.6 percent. Petrova reported that inflation, which peaked in September, has been contained around 10.3 percent and key inflation measures are under control.