IMF Approves $1.2B Disbursement to Pakistan After Review

The International Monetary Fund approved a $1.2 billion disbursement to Pakistan on Tuesday, following the completion of the second review of the country's $7 billion Extended Fund Facility bailout program. The approval, which includes $1 billion from the main facility and $200 million from a separate climate resilience program, brings the total funds released since last year to approximately $3.3 billion. This step comes amid ongoing efforts to stabilize Pakistan's economy after it narrowly avoided default in 2024.

The IMF's staff-level report, released on Thursday, outlined 11 new structural conditions that Pakistan must meet to access further tranches of the bailout. These additions bring the total number of requirements under the 37-month program to 64, reflecting intensified oversight on governance, anti-corruption measures, and economic reforms. The conditions aim to address deep-rooted issues identified in the IMF's recent Governance and Corruption Diagnostic Assessment, including institutional weaknesses, elite influence in key sectors, and inefficiencies in public finances.

Among the key directives, Pakistan must finalize a detailed tax reform roadmap by December 2025,...