To approve a $1.2 billion tranche for Pakistan, the IMF Executive Board met.

A significant financial sanction for Pakistan is anticipated at the Executive Board meeting of the International Monetary Fund (IMF) on December 8. The IMF’s official schedule states that the Board would consider Pakistan’s application for a $1.2 billion loan program distribution.

The Board is expected to authorize the release of $1 billion under the current IMF loan program, and an extra $200 million will be released as climate money, according to sources. On October 14, Pakistan and the IMF came to a staff-level agreement after lengthy technical reviews and negotiations.

According to officials, Pakistan has fulfilled all requirements established by the IMF for the $1.02 billion tranche to be disbursed.

Pakistan recently released the Corruption and Governance Diagnostic Report, which the IMF had insisted be made public before to the Executive Board meeting, in order to satisfy the last criteria.

In spite of ongoing fiscal difficulties, the impending clearance is seen as a critical step in bolstering Pakistan’s foreign exchange reserves and promoting economic stability. The administration anticipates that the funding will promote continuing economic reforms, boost investor confidence, and stabilize the economy.

Although they emphasize that further reforms and stringent financial discipline will be necessary for a durable economic recovery, economic analysts believe that the release of these funds will lessen external funding demands.