Pakistan and the IMF secure a staff-level agreement on a $1.2 billion payout.

On Tuesday, the International Monetary Fund said that it had reached a staff-level agreement with Pakistan regarding its loan program. With board approval, the country would be able to borrow $1.2 billion.

The IMF will give Pakistan $200 million under its Resilience and Sustainability Facility and $1 billion under its Extended Fund Facility, for a total of roughly $3.3 billion in payments under the two agreements.

Regular assessments are required of countries participating in IMF lending programs; if approved by the executive board of the fund, loan tranche payments are initiated.

“Supported by the EFF, Pakistan’s economic program is entrenching macroeconomic stability and rebuilding market confidence,” the organization stated in a statement.

With inflation still under control, external buffers getting stronger, and financial conditions getting better as sovereign spreads drastically reduced, the IMF stated the South Asian country’s recovery is still on track.

In the wake of recent severe floods, Pakistan has also promised to increase climate resilience and maintain a monetary policy that is suitably restrictive and data-dependent.

After an IMF delegation left Pakistan last week without finalizing agreements, Pakistan’s finance minister, Muhammad Aurangzeb, had earlier on Tuesday stated that the government was about to sign a preliminary agreement with the IMF.

According to Aurangzeb, the government now intends to reenter the capital markets. Before the year ends, it will issue its first green bond denominated in Chinese yuan, and then it will issue at least a $1 billion international bond.