IMF and Pakistan Reach Deal to Unlock Last Bailout Funds, But Economic Challenges Remain

• IMF and Pakistan reach staff-level agreement on second and final review of $3 billion bailout program, paving way for release of last tranche • Pakistan's economic and financial position improving due to prudent policies and resumed funding from partners • Growth to remain modest in current fiscal year as inflation still above target • New government committed to continuing reforms launched under bailout to address economic vulnerabilities • Pakistan expresses interest in a new medium-term IMF-supported program to resolve fiscal and external issues and strengthen economic recovery