Washington, May 10 (QNA) - The International Monetary Fund (IMF) has approved a new disbursement of $1.32 billion for Pakistan under its ongoing support programs, aiming to bolster the country's economy amid global and regional economic challenges.

The decision was taken by the IMF Executive Board in Washington, where it agreed to release funds under two facilities: the Extended Fund Facility and the Resilience and Sustainability Facility.

According to the IMF statement, Pakistan will receive about $1.1 billion under the Extended Fund Facility and roughly $220 million under the Resilience and Sustainability Facility, which supports climate-related projects and disaster resilience.

The latest disbursement brings total IMF financing under the two programs for Pakistan to around $4.8 billion.

The Fund said Pakistan's implementation of economic reforms had helped maintain relative macroeconomic stability, improve financing conditions and restore investor confidence, despite pressures linked to global geopolitical tensions.

It noted that Pakistan's foreign exchange reserves rose to around $16 billion by the end of December, compared with about $14.5 billion in June 2025.

However, the IMF warned that energy disruptions linked to regional instability had increased pressure on Pakistan's economy, particularly through higher fuel costs and reduced liquefied natural gas supplies, contributing to electricity shortages and fiscal strain.

The institution stressed the importance of continued structural reforms, including improving public finances, reforming state-owned enterprises, strengthening the energy sector and enhancing climate resilience and disaster response systems. (QNA)