IMF staff deal finalised, Pakistan eyes board approval to unlock next loan tranche

Pakistan has concluded a staff-level agreement with the International Monetary Fund and is now awaiting formal approval from the lender’s executive board, a step that will pave the way for the release of the next tranche under the ongoing programme.

Finance Minister Muhammad Aurangzeb confirmed the development, saying the technical agreement with the IMF has been finalised and only the board’s endorsement remains before funds are disbursed.

The announcement came during a meeting with representatives of S&P Global Ratings, where the government outlined its strategy to restore investor confidence and re-establish Pakistan’s presence in international financial markets.

Officials underscored recent debt servicing milestones to demonstrate the country’s improving external position. Earlier this month, Pakistan repaid a $1.4 billion Eurobond on schedule, a transaction the finance minister described as evidence of the country’s ability to meet its international obligations.

The government also highlighted continued financial backing from key regional partners. Saudi Arabia has provided an additional $3 billion in financial assistance, while an existing $5 billion deposit with Pakistan has been extended until 2028, strengthening near-term external liquidity buffers.

Authorities view the expected IMF board approval as a critical trigger for further financial inflows and market confidence, signalling progress in Pakistan’s stabilisation efforts and its gradual return to global capital markets.