AGENCIES — October 8 — The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistani authorities on providing approximately $1.2 billion in financial support to the country.

The agreement must now be approved by the IMF’s Executive Board before the funds can be released.

IMF mission chief Eva Petrova said Pakistani authorities had managed the economy effectively despite the impact of the ongoing conflict in the Middle East. She said the government’s tight economic policies had helped maintain macroeconomic stability.

However, the IMF warned that Pakistan’s fragile economy continues to face pressure from rising prices, high energy costs and supply disruptions.

According to the IMF, Pakistan’s real gross domestic product (GDP) growth stood at around 4 percent during the first three quarters of fiscal year 2026, while overall economic growth is projected at 3.6 percent.

Petrova said inflation in Pakistan reached a peak in May but had eased to around 10.3 percent in September. She added that core inflation also remained under control.

The latest agreement comes as Pakistan continues efforts to stabilize its economy through fiscal and monetary measures while addressing persistent inflation, energy costs and external economic pressures.

The final disbursement will depend on approval by the IMF’s Executive Board and the completion of the required programme conditions.