IMF board to meet Dec. 8 on Pakistan’s $1.2B disbursement

ISLAMABAD: The International Monetary Fund’s (IMF) Executive Board will convene on Dec. 8 to consider Pakistan’s request for a $1.2 billion disbursement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), according to the Fund’s updated schedule.

Pakistan and the IMF reached a staff-level pact in October after nearly two weeks of negotiations in Karachi, Islamabad, and Washington.

The deal, covering reviews of both the EFF and RSF programs, now awaits formal clearance from the IMF Executive Board before any funds are released. Board approval would unlock about $1.2 billion in fresh financing, around $1 billion under the EFF and $200 million through the RSF.

'On the right path'

In a separate development, IMF Deputy Managing Director Bo Li praised Pakistan’s reform momentum and said the country was “on the right path of reform and resilience,” according to a statement from the Finance Division.

He noted that, in addition to the $7 billion stabilization program, the RSF would provide $1.3 billion to strengthen climate-related fiscal and financial resilience.

The IMF and Pakistan reached a staff-level agreement in October after negotiations in Karachi, Islamabad, and Washington. The Fund earlier said Pakistan had made progress in fiscal consolidation, reduced inflation, and rebuilt external buffers, while noting continued risks from flood-related losses and the need for a tight, data-driven monetary policy.

Report flags systemic governance gaps

The board meeting follows the publication of the IMF’s long-delayed Governance and Corruption Diagnostic Assessment, which is required for board approval. The report flagged systemic governance gaps and estimated Pakistan could lift growth by up to 6.5% over five years if it implements a 15-point reform plan.

Opposition groups demanded investigations into what they termed major governance failures highlighted in the assessment.

Khyber Pakhtunkhwa Chief Minister Mohammad Sohail Afridi demanded accountability over alleged irregularities referenced in the IMF’s diagnostic report, saying the findings raised “grave questions” over the use of public resources. He voiced concern about funds being diverted abroad instead of supporting domestic development.

Finance Minister Muhammad Aurangzeb said the diagnostic assessment's findings should catalyze overdue reforms, adding that several recommendations were already underway.