TRADE & ECONOMY

IMF Board to Approve $1.2 Billion Tranche for Pakistan on December 8

IMF set to approve $1.2B tranche for Pakistan, including $1B under the loan program and $200M in climate financing.
2025-12-08
IMF Board to Approve $1.2 Billion Tranche for Pakistan on December 8

The approval will comprise $1 billion under the IMF’s loan program, as well as $200 million in climate financing. This will mark a significant step for Pakistan, which has been struggling with its economic challenges.

The loan tranche follows the staff-level agreement reached between Pakistan and the IMF on October 14, under the $102 billion loan program. The agreement came after Pakistan met all the necessary conditions laid out by the IMF, including fiscal reforms and measures to stabilize its economy.

This $1.2 billion tranche is expected to provide much-needed financial relief to Pakistan, helping address external payment pressures and budgetary gaps. It also highlights the importance of climate change adaptation and financing in the IMF’s support for Pakistan, given the country’s vulnerability to climate impacts.

Pakistan’s continued partnership with the IMF is seen as critical for restoring economic stability and securing further external financing, which is crucial for its ongoing recovery process.