Following successful discussions between Pakistan and the International Monetary Fund (IMF) regarding an economic review, a staff-level agreement has been reached for the second and final review under the standby arrangement. This agreement entails Pakistan receiving the last installment of $1.1 billion next month, pending approval by the IMF’s Executive Board. Notably, the IMF has praised Pakistan’s economic strides, acknowledging growth and confidence recovery attributed to prudent policy management and increased inflows from multilateral and bilateral partners. While recognizing progress, the IMF underscores the need for continued policy efforts to address economic vulnerabilities amidst ongoing challenges. The caretaker government and the State Bank of Pakistan have diligently followed program implementation, with the new government expressing commitment to sustaining ongoing policies and reforms for economic recovery. Discussions are underway for a new loan program aimed at addressing fiscal and external sustainability weaknesses, fostering economic recovery, and promoting inclusive growth. Key objectives include strengthening public finances, revitalizing the energy sector, controlling inflation, and promoting private-led activity. With improvements in Pakistan’s economic and financial situation, discussions for the new program are set to commence in the coming months.