Expanded IMF Loan Request as Pakistan Faces Rising External Pressures
WASHINGTON/ISLAMABAD: Pakistan is preparing to formally request additional financing from the International Monetary Fund (IMF) as it moves to cushion growing economic pressures linked to the ongoing Middle East conflict, officials said on Thursday.
According to government sources, Islamabad intends to expand its existing $7 billion Extended Fund Facility rather than negotiate an entirely new programme. Discussions between the finance ministry and IMF leadership are already underway, with authorities seeking an additional $2–2.5 billion to stabilize external accounts and manage rising economic risks.
Pakistan has so far received around $4 billion under the current arrangement and is expecting another $1 billion tranche in the near term. However, policymakers say heightened global uncertainty has increased the urgency for larger financial buffers.
Finance Minister Muhammad Aurangzeb has raised the issue directly with IMF officials, citing “external shocks” stemming from the Middle East conflict. These include rising energy prices, supply chain disruptions, inflationary pressure, and potential risks to exports and remittances.
Officials indicate that IMF members are already considering broader assistance packages globally as multiple economies face spillover effects from the crisis. This increases the likelihood that Pakistan’s request for an expanded facility could receive consideration.
The government recently secured a $3 billion injection from Saudi Arabia, which helped ease pressure on foreign exchange reserves. Despite this, authorities remain focused on maintaining reserve levels in line with IMF programme targets.
Officials believe expanding the existing arrangement remains the most practical option, though it may come with stricter conditions or revised repayment structures depending on negotiations.
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