IMF Loan to Pakistan: The International Monetary Fund (IMF) has approved new loan assistance of about $ 1.2 billion to Pakistan under bilateral arrangement. This loan assistance clearly shows that the country has maintained stability despite the devastating floods.

The newspaper ‘Dawn’ reported in a news on Tuesday that the IMF Executive Board of Directors, in its meeting held in Washington on Monday, gave this approval under the dual ‘track bailout’, 37-month Extended Fund Facility (EFF) and climate-focused Sustainable Stability Facility (RSF).

Pakistan, which is facing cash crisis, is currently in the 24th program of IMF. Under this, last year it was agreed to provide assistance of seven billion dollars in a period of 39 months. The news said that under the latest approval, Pakistan is allowed to withdraw one billion dollars under EFF and $200 million under RSF.

IMF statement

“Given the uncertain global environment, Pakistan needs to maintain prudent policies to further strengthen macroeconomic stability,” Nigel Clarke, Deputy Managing Director and acting head of the IMF, said in the statement. At the same time, there is a need to accelerate the reforms necessary to achieve strong, private sector-led and sustainable medium-term growth.

Islamabad officials described the approval as a sign of confidence in Pakistan’s reform efforts and macroeconomic management, the newspaper reported. He also stressed that the real test will be to translate these commitments into concrete economic reforms.

IMF had expressed dissatisfaction

The IMF last month expressed dissatisfaction over Pakistan’s weak financial management, cash monitoring and accountability for public resource allocation and advised it to reduce personal and political misuse of taxpayers’ money.

Also read: Crypto Market Update: Increased vigilance among crypto investors, impact of US Fed meeting visible

Pakistan, which is facing poverty, starvation and economic crisis, has once again pleaded with the International Monetary Fund (IMF) for a new debt. The Mission of IMF will remain in Pakistan for two weeks and will see if Pakistan is improving its economy. If the mission seems to improve, then it will give a new loan to Pakistan.

Pakistani newspaper The Dawn said on Tuesday (September 30, 2025) that the IMF mission held a formal meeting with Pakistan’s economic party. It reviewed the implementation of seven billion dollars loans and $ 1.1 billion facility.

According to the news, this meeting was held at a time when the performance of the program has been mixed by the end of June 2025 (which is under review). In the IMF, a team led by Pakistan’s mission head Eva Petrova met the Pakistani delegation led by Finance Minister Mohammad Aurangzeb on Monday.

The meeting was attended by prominent economic stakeholders, including Governor, Finance Secretary and Chairman of the Board of Federal Revenue (FBR), State Bank of Pakistan. The mission will remain in Pakistan for about two weeks and will review the implementation of an extended financing facility (EFF) of seven billion US dollars and a flexible and stable facility (RSF) of US $ 1.1 billion.

The report stated that the Government of Pakistan has asked the IMF mission to take into account the damage in the flood, but sources said that the review is based on the goals before the flood. Due to this, the government is accountable about the demonstrations till the end of June-2025. However, it can be considered later on exemption on the damage caused by floods. The report said that if this meeting is positive, then next month Pakistan will be eligible for the distribution of about $ 1 billion.

The IMF gave a loan of one billion dollars to Pakistan in May this year. The IMF had put several conditions in front of Pakistan before giving this loan, including carbon levy. Apart from this, the conditions of improvement in electricity fees from time to time and improvement of water prices were also included at many levels.

Pakistan has got another relief package from the International Monetary Fund (IMF), but instead it has to accept 11 new and strict conditions. According to a report by Express Tribune, IMF has allowed Pakistan to release $ 1 billion immediately, so that Pakistan has received a total amount of $ 2.1 billion so far. Along with this, IMF has also approved the $ 1.4 billion resilience and sustainability facility (RSF) for Pakistan.

Indo-Pak stress became a matter of concern for IMF

The IMF report clearly states that if the tension between India and Pakistan increases or persists for a long time, it may have a bad effect on the financial, external and improvement targets of this relief program. In such a situation, maintaining stability for Pakistan’s economy can be even more challenging.

What are the 11 new conditions of the IMF?

Now the matter of 11 strict conditions, without which Pakistan will not get the next installment. The impact of these conditions will be clear not only on the economy, but also on the life of the general public.

1. 17.6 trillion’s new budget

The IMF has directed Pakistan to pass a new budget by June 2025, which is in line with the fiscal targets of the IMF. In this budget, 1.07 trillion will be for development works, 8.7 trillion expenses, 2.1 trillion primary surplus and 6.6 trillion deficit has been fixed.

2. Agriculture income tax improvement

Now there is talk of taxing on income from farming. Under this, tax return processing, taxpayer identity, registration, communication and compliance will be made. It is mandatory to implement this entire process by June 2025.

3. Governance Action Plan

The IMF has asked the Government of Pakistan to prepare an action plan by preparing an action plan on the basis of governance diagnostic assessment, which will include ways to prevent corruption and increase transparency.

4. Cash transfer according to inflation

In order to maintain the purchasing power of the people of the country, the IMF has instructed Pakistan to adjust the cash transfer program every year according to inflation.

5. Financial strategy after 2027

Pakistan will have to make and publish a plan for the financial strategy after 2027, which will be described as a regulatory structure after 2028.

6. Annual amendment in electricity rates

Prior to 1 July 2025, Pakistan will have to notify the annual amendment of electricity rates so that the rates can be maintained according to the cost.

7. half -yearly amendment in gas tariff

The IMF has directed that by February 2026, Pakistan will have to notify half -yearly amendment in gas rates.

8. Captive Power Levi Law

Pakistan’s Parliament will have to pass a permanent law by the end of May 2025 to transfer the industrial energy to the national grid.

9. Debt service surcharge removal

Pakistan will have to enact a law so that the maximum limit of 3.21 per unit imposed on electricity consumers can be removed, so that the burden of power sector does not fall on honest consumers.

10. Eliminating technology zone incentives

The IMF has asked Pakistan to prepare a plan to completely eliminate all tax benefits given to special technology zones and industrial areas by 2035.

11. Bill on import of old trains

Pakistan will have to introduce a bill in Parliament with a list of all types of quantitative restrictions on imports of old old trains less than 5 years old by the end of July 2025.

Will the terms of IMF overshadow the Pakistani public?

These conditions of IMF will definitely give economic relief to Pakistan, but this can cause a big burden on the general public in the form of inflation, tax and energy rates. It will be interesting to see whether Pakistan will be able to fulfill these strict conditions or will they break its internal politics and patience.

Also read: Turn in United States and Russia! India has a chance, billions of dollars can come in the vault

Pakistan: Recently, a $ 2.4 billion bailout package was approved by the International Monetary Fund (IMF). Under this bailout package, a second installment of $ 7 billion being received under Extended Fund Facility (EFF) was also given a loan of $ 1 billion and a new flexibility and stability facility (RSF) loan program. That is, Pakistan was given financial assistance of total $ 2.4 billion.

India kept itself away from voting

During this time, India did not participate in voting in the IMF meeting. In the United Nation, such a country has the right to vote ‘NO’. The same is not with IMF. Here either you have to vote in the side or keep yourself away from voting. Keeping itself away from voting, India expressed that it is against this funding being given to Pakistan. However, Pakistan spent much more than this before getting funding from the IMF. We are not saying this, but it has been claimed in a media report of Pakistan.

Spending before getting a loan

A social media user named Bharat, while sharing a media report in Pakistan, wrote, Pakistan spent more than this before getting a loan from IMF. Pakistan has suffered heavy economic losses during tension with India. According to a media report in Pakistan, “The expenditure incurred in Pakistan’s war has been estimated to be around 4 billion dollars. These include an estimated $ 800 million as well as many more expenses for drones and missiles such as obstruction in economic activities, reduction in business opportunities and adverse effects on GDP growth. ‘

They alredy spent that imf loan and more even before it was released. https://t.co/vgwomedqlg

– Bharath (@Brakoo) May 12, 2025

It was also mentioned in the report that 25 million dollars have been spent daily on Pakistani military operations. These include alleged expenses on military personnel, in addition to logistic, fuel, maintenance of machines and weapons and cost of active war campaigns. After ‘Operation Sindoor’, Pakistan also carried out several attacks with drones and missiles across the border. It is estimated to cost $ 300 million.

Also read:

This one company of India alone is heavy on the entire Pakistani stock market, war is going on for a few more days and will give it to take it

Pakistan (Pakistan) has once again been expecting relief from the International Monetary Fund (IMF). IMF has approved a new bailout package of more than $ 1 billion to Pakistan. This is not the first time, Pakistan has knocked the door of IMF a total of 24 times since 1958. But the question arises that why did Pakistan’s economic condition not improve even after repeated loans?

Old pattern of Pakistan’s economy

Since the formation of the country in 1947, Pakistan has been facing continuous economic crises. War from India in 1947, 1965 and 1971, separation of Bangladesh and internal political instability have been major reasons for its economic weakness. Pakistan got the first IMF Bailout in 1958. From then to 2024, every third year he has taken a new bailout on an average.

Question on bailout amidst Indo-Pak tension

After the terrorist attack in Pahalgam on 22 April, the tension between India and Pakistan increased once again. In such an environment, Pakistan gets bailout from IMF many questions. Although the IMF says that this decision was taken before the existing tension, but the debate on the timeliness of such help has erupted.

Statistics show, Pakistan’s situation is serious

According to 2024 IMF and World Bank data-

Pakistan’s current account balance – 0.5 percent GDP

FDI (FDI)- 0.6 percent GDP

Total foreign reserves (including gold)- $ 12.98 billion

Compare other countries

India has reserve- $ 569.54 billion

Reserve near Bangladesh- $ 46.17 billion

Afghanistan has reserve- $ 9.75 billion

Reserve near Sri Lanka- $ 6.05 billion

Pakistan’s increasing foreign debt

IMF deputy managing director Nizal Clarke said after the bailout, “Pakistan’s debt can be considered sustainable as long as the government is committed to reforms. But if the policies lapse or stop the external funding, the currency crisis and the private sector are set to decline.” The IMF has given special emphasis on reforms this time, especially tax reforms, control over corruption and management of government expenses.

Terrorism and heavy expenditure on army

Experts say that Pakistan is not just the failure of economic policies due to repeated bailouts, but the public’s priorities are also not good for the public. Instead of economic reforms and basic services, more is being spent on structures promoting army and terrorism.

Between 2025 and 2027, Pakistan is under pressure to repay a loan of $ 130 billion. In the coming two years, Pakistan has to return about 130 billion to the IMF, other global agencies and banks, out of which in 2025, in 2025, $ 30 billion dollars and $ 100 billion in 2027 are outstanding. This figure is much larger than the help given by IMF.

Also read: Gold Price: Gold price increased rapidly between India-Pakistan collision, now so many thousand will be available

Bangladesh News: The International Monetary Fund (IMF) has given a huge blow to Bangladesh led by Mohammad Yunus. According to the report of the first Alo, Bangladesh has received a total loan of US $ 4.7 billion from IMF, out of which three installments have already been released. While the fourth and fifth installments could not be found. In fact, for the fourth and fifth installments, the IMF had laid the condition of improvement in four important areas, but a recent review has found that Bangladesh has lagged behind in fulfilling these conditions.

Major four issues- which did not improve
1. Weak revenue growth

2. Non-market based currency exchange rates

3. Inadequate cuts in subsidy

4. Lack of progress in banking sector

These points were put in front of the IMF officer Chris Papagorgioau during a briefing held in Dhaka. This review mission lasted for two weeks from April 6 and during this time the IMF team interacted with various departments of Bangladesh government.

GDP growth declines, still hope remains
Chris Papagorganiou said that Bangladesh’s economy is being affected by global uncertainties. In the first half of the current financial year, the GDP growth rate has come down to 3.3%, which was 5.1% last year. Although the inflation has come down from 11.7% to 9.4%, it is still above the target range (5-6%). Papagorgoyo said that the IMF will still continue the discussion and a final decision can be taken on the release of installments by June, provided the progress is satisfactory.

IMF’s big recommendations
The IMF said that the GDP ratio of Bangladesh said that the country should make a clear difference between tax policy and administration. Tax exemption should be reduced and permanent measures should be adopted to increase revenue. At the same time, the IMF has described points like legal reform, correct evaluation of asset quality, and control over money laundering. He has also recommended to increase the independence of Bangladesh Bank.

Will IMF’s loan stop?
Former World Bank chief economist Zahid Hussain believes that even though Bangladesh has not improved 100%, the possibility of stopping the IMF installment is less. He said that another IMF team will come in May, then things will be cleared.