The International Monetary Fund (IMF) said on Wednesday that it had reached a staff-level agreement (SLA) with Pakistan on its loan programmes, which would allow the country to access $1.2 billion after approval from the fund’s board.

If approved, the IMF will provide Pakistan $1bn under its Extended Fund Facility (EFF) and $200 million under its Resilience and Sustainability Facility (RSF), bringing total disbursements under the two arrangements to about $3.3bn.

Last week, an IMF mission led by Iva Petrova had concluded talks with Pakistani authorities on the second review of the EFF — agreed in 2024 to shore up the economy after a severe financial crisis — and the first one for the RSF climate loan.

The mission had left Pakistan without signing a staff-level agreement. However, the Fund had said “significant progress” had been made towards reaching the deal. A day earlier, Finance Minister Muhammad Aurangzeb — who is currently in Washington — had expressed the hope that the agreement would be reached this week.

In a statement issued early on Wednesday by the Fund, Petrova stated that the staff-level agreement remained subject to approval by the IMF Executive Board.

“Supported by the EFF, Pakistan’s economic programme is entrenching macroeconomic stability and rebuilding market confidence,” she said.

“The recovery remains on track, with the FY25 current account recording a surplus — the first in 14 years, the........

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