Pakistan is , yet the repeat borrower will chair the Boards of Governors of the IMF and World Bank Group in 2027.
The role puts the country in charge of proceedings attended by member countries’ finance ministers and central bank governors, giving Islamabad a prominent platform but no control over lending decisions.
will hold the chairmanship for the first time since 1953, its Ministry of Economic Affairs said on Friday.
Economic Affairs Minister Ahad Khan Cheema, Pakistan’s governor to the World Bank, was announced as the incoming chair for 2027 during the World Bank-IMF Annual Meetings in Bangkok.
The ministry called the appointment a “historic milestone”, saying it would allow Pakistan to contribute to global economic discussions and facilitate dialogue among member countries. For Islamabad, however, the diplomatic recognition comes
Pakistan is currently supported by two IMF programmes: a $7 billion Extended Fund Facility (EFF) to address external payment needs and support reforms, and a $1.4 billion Resilience and Sustainability Facility (RSF) to help tackle climate-related risks.
A fresh staff-level agreement could release about $1 billion under the EFF and $210 million under the RSF. That money still requires approval from the IMF Executive Board. If cleared, total disbursements under the two programmes would reach about $5.7 billion.
The agreement covers the fourth review of the 37-month EFF programme and the third review of the 28-month RSF arrangement, following talks led by the IMF’s Iva Petrova.
Pakistan’s a familiar problem: securing enough foreign currency to meet external obligations while keeping the economy stable. Inflation, financing pressures and periods of depleted reserves have repeatedly brought Islamabad back to the lender.
The World Bank has also described Pakistan’s growth model, marked by high public consumption, low productivity and heavy borrowing, as unsustainable. The challenge is to turn financial support into growth that reduces the need for the next loan.
The latest IMF assessment offers signs of improvement. The lender said Pakistan had preserved macroeconomic stability despite the West Asia conflict, helped by strong policies and support under its loan programme.
Real GDP grew 4 per cent in the first three quarters of FY26. Higher energy prices and supply disruptions then weakened momentum, leaving full-year growth estimated at 3.6 per cent.
Inflation eased to about 10.3 per cent in September after peaking in May. Strong remittances helped keep the current account broadly balanced in FY26, while gross reserves rose to about $21 billion by the end of September.
Petrova pointed to sovereign rating upgrades and renewed access to international markets as signs of stronger policy credibility. But geopolitical tensions, volatile energy prices, tighter global financing conditions and trade disruptions remain risks.
Pakistan has secured the chairmanship. Reducing its need for financial support from the same institutions will be a harder task.