IMF Approves $1.2 Billion Lifeline as Flood-Hit Pakistan's Economy Struggles to Stabilise

Brief by Shorts91 Newsdesk / 06:04pm on 09 Dec 2025,Tuesday International

The IMF has approved a $1.2 billion tranche for Pakistan, completing reviews of its $7 billion Extended Fund Facility and $1.4 billion Resilience and Sustainability Facility. With this, Pakistan has received $3.3 billion of the $8.4 billion package, crucial for stabilising its $370 billion economy battered by floods, inflation, and depleted reserves. The IMF praised progress primary surplus of 1.3% GDP, reserves up to $14.5 billion, and inflation down to 12–15% but urged discipline in monetary policy and energy reforms. Prime Minister Shehbaz Sharif hailed reforms as a “global case study.” Yet, experts warn Pakistan’s 24th IMF bailout underscores chronic mismanagement and recurring dependency cycles.(PC: IOTA)

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