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Summary:

Pakistan’s Central Bank announced on December 11, 2025, it received $1.2 billion from the International Monetary Fund (IMF). This disbursement is part of ongoing loan programs, specifically the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), designed to bolster macroeconomic stability and climate resilience. The IMF’s Executive Board approved the release after completing reviews of both facilities. This latest tranche brings the total IMF disbursement to Pakistan under the bailout package to $3.3 billion. Pakistan is currently under its 24th IMF program, an agreement made last year to provide $7 billion over 39 months. The funding is crucial for Pakistan, a country struggling with economic losses due to climate-related disasters, which have significantly impacted its GDP and developmental progress.
World Bank data indicated that climate disaster resulted in $29.3 billion in economic losses over the period of 1992-2021. Additionally, the floods of 2022 killed 1,700 people, displaced 8 million, increased the poverty rate by up to 4 percentage points, and brought economic losses equivalent to 4.8% of Financial Year (FY) 22 GDP

News Article:

IMF Releases $1.2 Billion to Pakistan for Economic Stability and Climate Resilience

Karachi, December 11, 2025 – Pakistan’s State Bank of Pakistan (SBP) announced today the receipt of $1.2 billion from the International Monetary Fund (IMF). The funds are part of the ongoing Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), aimed at stabilizing the Pakistani economy and building resilience against climate change impacts.

The disbursement, equivalent to SDR 914 million, follows the IMF Executive Board’s completion of the second review of the EFF and the first of the RSF during a meeting in Washington on Monday, December 8, 2025. The amount will be reflected in Pakistan’s foreign exchange reserves for the week ending December 12.

“This latest tranche brings the total IMF disbursement to Pakistan under the current bailout package to $3.3 billion,” stated an SBP spokesperson. Pakistan is currently navigating its 24th IMF program, a $7 billion agreement spanning 39 months which was formalized last year. As per the agreement, Pakistan will draw $1 billion under EFF and $200 million under RSF.

The IMF’s support is considered critical as Pakistan faces significant economic challenges compounded by the increasing frequency and severity of climate-related disasters. A 2022 World Bank report estimated that climate and weather disasters caused $29.3 billion in economic losses in the period of 1992-2021.
More recently, the floods of 2022 killed 1,700 people, displaced 8 million, increased the poverty rate by up to 4 percentage points, and brought economic losses equivalent to 4.8% of Financial Year (FY) 22 GDP

The IMF’s continued financial assistance aims to support Pakistan’s macroeconomic stabilization efforts and long-term structural reforms needed to mitigate the devastating economic consequences of climate change.

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