The International Monetary Fund's Executive Board has approved $1.32 billion in fresh financing for Pakistan, unlocking roughly $1.1 billion under the Extended Fund Facility (EFF) and around $220 million under the Resilience and Sustainability Facility (RSF), bringing total disbursements under both arrangements to approximately $4.8 billion. The release follows Pakistan's successful meeting of key programme benchmarks, including tax policy measures and energy pricing adjustments, with the IMF noting that foreign exchange reserves had climbed to $16 billion by end-December 2025. The Fund warned, however, that geopolitical tensions stemming from the Middle East conflict pose heightened risks, urging Islamabad to maintain tight macroeconomic policies and press ahead with structural reforms — including energy sector overhauls, state enterprise privatisation, and anti-corruption measures — to secure long-term fiscal stability.