IMF Grants Pakistan $2.4B as Inflation Hits Record Low 0.3%

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Pakistan just secured $2.4 billion from the IMF while achieving a record low inflation rate of 0.3%.

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The funding includes $1 billion from an ongoing program and $1.4 billion specifically for climate resilience projects.

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Pakistan's central bank has slashed interest rates by 1,100 basis points since June 2024, making loans more affordable for businesses and families.

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Foreign currency reserves have grown from $9.4 billion to $10.3 billion in just eight months.

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Why did India choose not to vote on this funding package?

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Tensions between India and Pakistan escalated after a Kashmir attack in April, leading to airspace closures and other sanctions.

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The $1.4 billion climate package will help Pakistan improve water systems and create a $200 million emergency fund by 2027.

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Pakistan still carries heavy debt equal to 73.6% of its entire economy. Can these reforms create lasting stability?

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The Benazir Income Support Programme now reaches 9 million Pakistani households—15% more than last year.

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Pakistan has borrowed from the IMF 25 times since 1950, but this is the first package with dedicated climate funding.

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