India lifts policy rate to 5.50% in first increase since 2023
The six-member policy panel voted unanimously for a 25-basis-point increase as inflation exceeded its target and the rupee faced pressure.
IMF staff agreement could open $1.21 billion in funding for Pakistan
The proposed financing includes about $1 billion from the Extended Fund Facility and $210 million from a climate-focused program, subject to board approval.
The International Monetary Fund said on October 7 that its staff had reached an agreement with Pakistan covering reviews of lending programs. The deal could unlock about $1.21 billion, but requires approval from the IMF board.
The fund said board approval would give Pakistan access to about $1 billion from the Extended Fund Facility and $210 million from the climate-focused Resilience and Sustainability Facility. Disbursements from the two programs would then reach around $5.7 billion.
Pakistan still relies on external funding to build up its foreign exchange reserves and cover debt repayments. The IMF said Extended Fund Facility support had helped the authorities navigate the Middle East conflict’s impact. It separately credited strong policies with helping preserve macroeconomic stability.
The IMF warned that risks remained elevated, citing geopolitical tensions, fluctuations in energy prices, tighter worldwide financial conditions and trade disruptions.
Ahmad Mobeen, principal economist at S&P Global Market Intelligence, said Pakistan was more vulnerable than any other major Asia-Pacific economy to a prolonged Middle East conflict. He cited its reliance on energy imports from the Gulf, remittances and financing support from the region.