Pakistan IMF bailout clears hurdle for $1.2bn draw

Pakistan has moved closer to accessing about $1.2 billion from the International Monetary Fund after reaching a staff-level agreement with the lender.

The agreement still requires approval from the IMF Executive Board before the money can be released.

IMF negotiator Iva Petrova said Pakistani officials had "successfully navigated the impact of the Middle East conflict" and that strong policies had helped preserve macroeconomic stability.

Pakistan has faced soaring prices during months of fighting and disruptions to global energy shipments. Demonstrators have held protests in major cities over food, fuel and rent prices and over secure employment.

Petrova said Pakistan recorded real GDP growth of 4 percent in the first three quarters of fiscal year 2026, although higher energy prices and supply disruptions weakened momentum. Overall growth for the fiscal year is estimated at 3.6 percent.

She said headline inflation, after peaking in May, moderated to about 10.3 percent in September, while core inflation remained contained.