In a major relief to Pakistan’s economic stability, the International Monetary Fund (IMF) has approved a $1.3 billion loan under its Climate Resilience and Sustainability Facility (CRSF). This decision also clears a $1 billion tranche under the outstanding $7 billion Extended Fund Facility (EFF), increasing the total disbursements to $2 billion.
IMF Mission Chief Nathan Porter disclosed the development on Tuesday, confirming with staff-level agreement with state authorities from Pakistan. “The revamped, 28-month program under the Resilience and Sustainability Trust of nearly $1.3 billion will help meet the approved reform agenda,” Porter said.
The new approved loan is to help Pakistan address climate dangers alongside pursuing economic reforms. The IMF says the country has made important progress on tax equity, monetary stability and energy sector reform. The Fund commended Pakistan’s re- establishing of macroeconomic steadiness in the midst of global setbacks. 
“Since heading for inflation to its lowest levels since 2015 over the past 18 months, Pakistan also improved the financial conditions and strengthened the external balances,” said Porter.
The approval comes as Pakistan struggles with increasing debt, notably to China, and seeks foreign help to address economic weaknesses. The recent IMF backing is expected to help to give a confidence boost to investors, while figuring out how to provide much-needed help with serious climate and fiscal issues is now a crucial moment for the nation’s economic future.
