Pakistan has turned to the International Monetary Fund 24 times since 1958, making it one of the most frequent borrowers in IMF history. Pakistan has been a member of the International Monetary Fund (IMF) since 1950. Due to the high unpredictable nature of its economy and its dependence on imports, the IMF has provided loans to Pakistan 24 times, with its most recent being in 2024.
The current program — a 37-month, $7 billion Extended Fund Facility approved in September 2024 — has already disbursed $3.3 billion through two completed reviews. But the third review, launched in February 2026, has stalled amid Middle East tensions and disagreements over fiscal targets.
How Many Times Has Pakistan Gone to the IMF?
The IMF and Pakistan have a long historical relationship: since Pakistan joined the fund in 1950, the IMF has provided a total of 24 programs to the country — and Pakistan is one of the largest IMF debtors after countries such as Argentina, Egypt, and Ukraine. The cycle has remained consistent: Pakistan borrows to stabilize the economy but often struggles to implement long-term reforms, leading to repeated returns to the IMF.
These 24 programs have included Stand-By Arrangements (short-term emergency loans), Extended Fund Facilities (medium-term reform programs), Structural Adjustment Facilities, and most recently a Resilience and Sustainability Facility for climate resilience.
History of Pakistan IMF Programs
Early Programs (1958–1977)
In 1958, for the first time, Pakistan went to IMF for bailout. For this, IMF lent out US$25,000,000 to Pakistan on standby arrangement basis on 8 December 1958. During the 1960s and 1970s, Pakistan turned to the IMF multiple times as the economy struggled with political instability, wars, and structural weaknesses. In 1965, following the war with India, Pakistan faced economic shocks and relied on IMF support to stabilize the economy.
The early 1970s were even more turbulent, as the separation of East Pakistan in 1971 severely disrupted economic activity. In 1972 and 1974, Pakistan again signed standby arrangements with the IMF to tackle deficits and rebuild confidence in its economy.
Structural Adjustment Era (1980–1999)
Pakistan entered new programs in 1980, 1981, and throughout the decade as it sought to address structural issues in the economy. These included fiscal deficits, inflation, and trade imbalances. Much of the IMF’s assistance during this period was tied to broader structural adjustment programs, which required Pakistan to implement reforms such as currency devaluation, subsidy cuts, and tax reforms.
By the 1990s, Pakistan’s reliance on IMF support deepened. The decade was marked by frequent political changes, sanctions after nuclear tests in 1998, and worsening fiscal challenges. During this period, Pakistan entered nearly half a dozen IMF agreements, including standby arrangements and structural adjustment programs.
Many of these programs, however, were not fully implemented or suspended midway because Pakistan failed to meet the agreed conditions. This created a pattern of partial reliance on IMF funds without achieving lasting reforms, leaving the economy vulnerable to recurring crises.
Post-9/11 and the 2008 Crisis
The early 2000s presented a mixed phase. After the events of 9/11, Pakistan secured significant foreign aid and debt relief, which temporarily reduced the urgency of IMF assistance.
By 2008, the country was again facing a severe balance-of-payments crisis as global oil prices rose and domestic inflation increased. In November 2008, Pakistan signed one of its largest IMF deals at the time, worth $7.6 billion, later expanded to $11.3 billion. This program demanded strong fiscal discipline and reforms in the energy sector, though once again, implementation was inconsistent.
The 2013 EFF and 2019 Programs
When Nawaz Sharif returned as Prime Minister following the 2013 general elections, Sharif negotiated a renewed IMF bailout worth an additional $5.28 billion. This program, completed in September 2016, was one of the rare instances Pakistan successfully completed an IMF program.
In 2019, during the PTI government, the IMF’s executive board approved a three-year, $6 billion loan for Pakistan, disbursing $2 billion annually under an extended fund facility (EFF). However, COVID-19 and political instability disrupted implementation.
The 2023 Stand-By Arrangement
On 30 June 2023, the IMF and Pakistan reached an agreement at the staff level for a stand-by arrangement worth $3 billion. This agreement came at a critical time for Pakistan, as it was facing the risk of defaulting on its financial obligations.
The IMF Executive Board completed the second review under the Stand-By Arrangement (SBA) for Pakistan, allowing for an immediate disbursement of SDR 828 million (around $1.1 billion), bringing total disbursements under the arrangement to SDR 2.250 billion (about $3 billion). The completion of the second and final review reflects the authorities’ stronger policy efforts under the SBA, which have supported the stabilization of the economy and the return of modest growth.
The Current $7 Billion EFF (2024–2027)
The Executive Board of the International Monetary Fund (IMF) concluded the 2024 Article IV consultation with Pakistan and approved a 37-month Extended Arrangement under the Extended Fund Facility (EFF) for Pakistan in the amount of SDR 5,320 million (or around US$7 billion). The Fund’s immediate disbursement will be SDR 760 million (or about US$1 billion).
Key priorities under the new EFF-supported program include (i) rebuilding policy making credibility and entrenching macroeconomic sustainability through consistent implementation of sound macro policies and a broadening of the tax base; (ii) advancing reforms to strengthen competition, and raise productivity and competitiveness; (iii) reforming SOEs and improving public service provision and energy sector viability; and (iv) building climate resilience.
The program formalizes, for the first time, provincial involvement through a new National Fiscal Pact (NFP), enhancing federal-provincial fiscal relations and facilitating devolution. This program includes a novel revenue mobilization strategy under the NFP which aims at taxing previously undertaxed sectors such as agriculture and property, as well as retailers at the federal level, while also integrating exporters into the regular tax regime.
Resilience and Sustainability Facility
Alongside the EFF, the IMF approved a separate climate-focused lending facility. The 28-month RSF was approved on May 9, 2025, and is supporting the authorities’ efforts to reduce vulnerabilities to natural disasters and to build economic and climate resilience. The Executive Board also approved the authorities request for an arrangement under the Resilience and Sustainability Facility (RSF), which will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters, with access of around $1.4 billion.
Review Progress and Disbursements
The $7 billion EFF operates through periodic reviews, with each successful review unlocking approximately $1 billion.
First Review (May 9, 2025): The IMF Executive Board completed the first review under the Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw the equivalent of about $1 billion.
Second Review (December 8, 2025): The Executive Board of the International Monetary Fund (IMF) completed the second review of Pakistan’s economic reform program supported by the EFF and the first review of Pakistan’s program supported by the RSF. This decision allows for an immediate disbursement of around US$1 billion under the EFF and around US$200 million under the RSF, bringing total disbursements under the two arrangements to about $3.3 billion.
Third Review and the Middle East Crisis
The third review has become the most complicated yet. Pakistan and the International Monetary Fund are set to begin policy-level negotiations today (Wednesday) under the third review of the $7 billion Extended Fund Facility (EFF), a key step toward the release of the fourth loan tranche.
However, Pakistan and International Monetary Fund (IMF) failed to reach staff-level agreement despite two weeks of high-stakes virtual negotiations. Discussions moved online on March 3 following the US-Israel attacks on Iran and were originally scheduled to conclude on March 11.
Although Pakistan met the quantitative performance criteria for the July–December 2025 period, the IMF expressed concerns that the government may fail to achieve the primary budget surplus target by the end of the fiscal year. Pakistan had committed to generating a primary surplus of Rs3.15 trillion during the current fiscal year, which officials now expect could be missed by a wide margin.
As of March 26, 2026, Pakistan has moved closer to securing a staff-level agreement with the International Monetary Fund after the global lender shared a draft of the Memorandum of Economic and Financial Policies with the government, according to sources. The agreement is expected to be finalized once consensus is achieved on the draft.
The review is critical as Pakistan would become eligible for disbursements of about $1 billion under the EFF and $200 million under the RSF upon successful completion.
Key Economic Indicators Under the EFF
The program has delivered measurable results despite ongoing challenges:
- Reserves: Gross reserves stood at $14.5 billion at end-FY25, up from $9.4 billion a year earlier.
- Fiscal balance: Fiscal performance has been strong, with a primary surplus of 1.3 percent of GDP achieved in FY25, in line with targets.
- Inflation: Inflation fell to a historic low of 0.3 percent in April. PM Shehbaz Sharif noted inflation had been brought down to 7% from 35%.
- Revenue shortfall: While officials say most programme benchmarks have been met, Pakistan has faced a substantial tax shortfall. The FBR recorded a revenue gap of Rs329 billion in the first six months of the fiscal year, which later widened to Rs372 billion.
- Gas circular debt: The country’s gas sector circular debt currently stands at around Rs3,180 billion.
Why Pakistan Keeps Returning to the IMF
Pakistan’s economic vulnerabilities stem from structural weaknesses that successive governments have failed to address, including a chronically narrow tax base, low productivity in agriculture and industry, heavy dependence on imported energy, weak regulatory oversight, lack of institutional transparency, and a bloated public sector.
Pakistan’s dependency on the IMF reflects a broader paradox: While bailouts can stabilise macroeconomic indicators in the short term, they often entrench structural inequities and fail to address the underlying causes of economic instability.
The current EFF differs from predecessors in one important way: it starts from a position of restored stability rather than crisis. The new program, unless many of its predecessors, has the advantage of beginning with economic stability already restored. This allows policy efforts to immediately focus on sustainable growth and structural reform.
Whether Pakistan breaks the cycle this time depends on sustained fiscal discipline, genuine tax base broadening, energy sector reform, and the political will to complete — rather than abandon — structural reforms. With the Middle East crisis threatening oil prices and financial stability, the narrow path to success has become even narrower.