The International Monetary Fund’s (IMF) Executive Board on Monday approved a $1.3 billion disbursement for Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), marking a major milestone in the country’s ongoing bailout programme.

According to official details, the approval covers two loan tranches, the third EFF tranche, worth $1 billion, and the first tranche under the climate-focused RSF, amounting to $300 million.

The IMF will release the full amount to Pakistan immediately.

Pakistan secured the 37-month EFF programme in September 2024, receiving its first $1 billion tranche the same month. The second tranche, also $1 billion, was released in May 2025.

The latest approval follows a staff-level agreement reached in October after rounds of negotiations in Karachi, Islamabad and Washington.

The agreement covered the concurrent reviews of both the EFF and RSF programmes.

The IMF said the combined disbursement aims to support Pakistan’s economic stabilisation, fiscal consolidation and climate-resilience reforms.

With this release, Pakistan moves a step closer to completing its current IMF programme, while also strengthening buffers for climate-related risks through the RSF window.