(MENAFN) The International Monetary Fund (IMF) announced on Wednesday that it has finalized a staff-level agreement with Pakistan under both the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), potentially unlocking a fresh disbursement of $1.2 billion—pending final clearance by the IMF Executive Board.

If the Board grants approval, Pakistan stands to receive $1 billion through the EFF and an additional $200 million via the RSF. This would bring the total disbursed under the current arrangements to approximately $3.3 billion.

The announcement followed a two-week IMF delegation visit to Karachi and Islamabad, conducted from September 24 to October 8.

In a formal statement, the IMF noted that Pakistan's path to recovery appears intact, citing improvements in fiscal discipline, a current account surplus—the first in 14 years—and inflation figures aligning with policy targets.

However, the Fund cautioned that extreme weather has posed serious risks to the country’s outlook.

"The recent floods, which have affected nearly 7 million people, caused over 1,000 deaths, and severely damaged housing, public infrastructure, and agricultural land, have weighed on the outlook, particularly of the agriculture sector," it said.

Despite these setbacks, Pakistani officials reiterated their commitment to the reform agenda.

According to the IMF, the government "reaffirmed their commitment to the EFF- and RSF-supported programs, and to maintaining sound and prudent macroeconomic policies while advancing ongoing structural reforms."

The agreement follows a similar staff-level deal reached last year between Pakistan and the IMF for the final review of a $3-billion bailout package.

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