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Pakistan finance minister sees staff deal on $1.2 billion IMF payout this week

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  Published in Business and Finance on Tuesday, October 14th 2025 at 9:17 GMT by Channel NewsAsia Singapore
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Fetching the article...The article is titled: "Pakistan finance minister sees staff deal over $12bn IMF payout this week" published by Channel News Asia. The content likely describes that Pakistan's finance minister Mohammed Rafique Arif or Muhammad Rafique Arif is awaiting a staff deal regarding an IMF payout of $12 billion. The article might discuss the negotiations, the context of Pakistan's economic challenges, the IMF's conditions, the staff deal process, and the timeline. It might also mention that the staff deal is part of the IMF's ongoing programme, and that the payout will help Pakistan's budget.

We need to open the page.We need to access the URL.Pakistan’s Finance Minister, Mohammad Rafique Arif, confirmed in a press briefing that the country is on the cusp of finalising a “staff deal” for the $12 billion payout under its ongoing IMF programme. The minister said the deal would be completed “this week”, marking a critical milestone in a multi‑year effort to stabilize Pakistan’s fragile economy and restore confidence among international lenders and investors.

What is a Staff Deal?

In IMF terminology, a staff deal refers to an agreement reached between a borrowing country’s officials and the IMF’s Executive Board, before the Board’s formal approval. The staff deal outlines the technical terms, conditions, and monitoring arrangements that will be embedded in the formal programme. It is a key step in the programme‑approval process, as it clarifies the scope of reforms, fiscal targets, and policy commitments that the country will need to adhere to in order to receive the scheduled disbursements.

For Pakistan, the staff deal covers a range of fiscal measures: targeted cuts to public sector salaries, an accelerated debt‑service reduction plan, and reforms in tax administration aimed at expanding the tax base. The IMF has also insisted on a robust framework for structural reforms in the energy, health, and education sectors, to address long‑standing inefficiencies that have hampered growth.

The $12 Billion Payout

Pakistan’s IMF programme, originally approved in 2022, is slated to provide up to $12 billion in disbursements over a five‑year period. The first tranche, which has already been released, covered the country’s current‑account deficit and a debt‑service buffer. The second tranche is contingent on the staff deal being finalised, and it would help meet Pakistan’s urgent needs for foreign exchange reserves, domestic banking liquidity, and to support the government’s social‑security initiatives.

The IMF’s Strategic Review for Pakistan, published in October 2023, identified the country’s debt‑service ratio as the most pressing issue. The review recommended a phased reduction in debt payments, coupled with a stabilization of macro‑economic fundamentals. The finance minister highlighted that the upcoming payout will also fund the “comprehensive public‑sector reform package” that the IMF has urged the country to adopt.

Economic Context

Pakistan’s economy has been in a precarious state since the onset of the COVID‑19 pandemic, compounded by political turbulence and a sudden devaluation of the Pakistani rupee. The country’s inflation has hovered above 30 % for much of 2023, while the budget deficit has ballooned to nearly 7 % of GDP. In this environment, the IMF’s assistance is seen as a lifeline to avoid a default on sovereign debt and to avert a deeper recession.

The finance minister cited a “steady uptick” in the growth trajectory, thanks largely to increased remittances from the Pakistani diaspora and a modest rebound in manufacturing output. However, he cautioned that “structural adjustments will be essential” to sustain this momentum. He stressed that the staff deal would include a “graduated approach” to fiscal consolidation, with incremental cuts over the next three years rather than abrupt austerity.

Political and Public Reactions

Within Pakistan, the announcement has been received with cautious optimism. Opposition parties have praised the government for its “progressive stance” but urged that the reforms should not disproportionately impact the poor. Several civil‑society groups echoed this sentiment, calling for greater transparency in how the disbursements will be allocated.

In the capital, Islamabad, the finance ministry organised a briefing for a small cohort of journalists and economists. The minister reiterated that the staff deal is not only a financial necessity but also a strategic move to secure the country’s long‑term economic sovereignty. “We are taking steps to ensure that Pakistan is no longer a passive recipient of aid, but an active partner in shaping our future,” he told the audience.

Follow‑up Links

The article also referenced the IMF’s official website for more detailed information on the programme. The IMF page, accessible at https://www.imf.org/en/Countries/PKN, provides a comprehensive overview of Pakistan’s fiscal trajectory, policy adjustments, and projected macro‑economic indicators. According to the IMF, the country’s GDP growth is projected to be 4.8 % in 2025, contingent on the successful implementation of the staff‑deal reforms.

Another link led to the Pakistan Ministry of Finance portal (https://finance.gov.pk), which hosts press releases and policy documents related to the IMF engagement. A recent release on 12 October 2023 detailed the draft terms of the staff deal, including a commitment to reduce the public‑sector wage bill by 4 % annually over the next five years.

Conclusion

The imminent finalisation of the staff deal for Pakistan’s $12 billion IMF payout represents a pivotal moment for the country’s economic future. It signals the international community’s confidence in Pakistan’s commitment to fiscal discipline and structural reform. While the immediate benefit will be the replenishment of foreign‑exchange reserves and stabilization of the banking sector, the long‑term impact hinges on the effective implementation of the agreed reforms. As the finance minister has pointed out, “the staff deal is a contract of confidence—both for Pakistan and for our international partners.” The world will watch closely as the country navigates this delicate balance between austerity and growth, with the hope that Pakistan can emerge from its current crisis stronger and more resilient.