The International Monetary Fund (IMF) Executive Board has approved Pakistan’s latest loan review, paving the way for the release of nearly $1.2 billion in fresh funding, Finance Minister Muhammad Aurangzeb confirmed on Friday.
Under the decision, Pakistan will receive around $1 billion through the Extended Fund Facility (EFF) and approximately $210 million under the Resilience and Sustainability Facility (RSF), taking total disbursements under both programmes to nearly $4.5 billion.
The approval comes as Pakistan works to stabilise foreign exchange reserves, control inflation, and implement IMF-backed economic reforms, including higher revenue collection and the privatisation of state-owned enterprises.
According to reports, Pakistan met 14 out of 17 IMF performance and indicative targets for December 2025. The government has also assured the IMF that it will replace the current electricity subsidy system for users consuming up to 200 units with a targeted subsidy mechanism starting January 2027.
The new subsidy model will use data from the Benazir Income Support Programme to prevent misuse and ensure assistance reaches low-income households.
Speaking outside Parliament House, Muhammad Aurangzeb declined to comment on possible changes in electricity prices, saying the government and energy ministry were continuing reforms in the power sector.
