The International Monetary Fund (IMF) has reached a staff-level agreement with Pakistan that could unlock about $1.21 billion (roughly €1 billion) in financing, the lender said on Wednesday , as the South Asian country grapples with spiking food and fuel prices, and high unemployment. The bailout deal still needs to be approved by the IMF Executive Board. IMF negotiator Iva Petrova said Pakistan had successfully navigated the impact of the Middle East conflict, with strong policies helping preserve macroeconomic stability. Pakistan's economy grew 4% in the first three quarters of fiscal 2026 with full-year growth estimated at 3.6%, the IMF said. Petrova attributed the weakened momentum to "higher energy prices and supply disruptions.
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