Thursday, July 10, 2025
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IMF Approves $7 Billion Bailout Package for Pakistan

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The International Monetary Fund (IMF) Executive Board has approved a $7 billion Extended Fund Facility (EFF) for Pakistan, following confirmation of $12 billion in bilateral loans from Saudi Arabia, China, and the UAE.

Pakistan and the IMF initially reached an agreement on the 37-month loan program in July 2024. This breakthrough followed the securing of $5 billion in cash deposits from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.

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As a precondition for the IMF’s approval, Pakistan was required to raise $2 billion in external financing from bilateral and commercial lenders. The global lender also identified an additional external financing gap of $2 to $2.5 billion, which was filled with Saudi oil facilities, a $400 million ITFC facility from the Islamic Development Bank (IsDB), and support from Middle Eastern commercial banks, including Standard Chartered Bank.

Prime Minister Shehbaz Sharif expressed optimism that this would be the country’s final IMF program.

Pakistan, often on the verge of sovereign default, has frequently turned to IMF programs and bilateral financing from countries such as Saudi Arabia and the UAE to meet IMF targets.

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