The International Monetary Fund has transferred $1.2 billion to Pakistan’s central bank, the latest disbursement under the country’s loan program, according to officials in the Ministry of Finance.

The funds were deposited into Account No. 1 of the State Bank of Pakistan, the officials said. The IMF had approved the disbursement on Dec. 8 following its review of Pakistan’s economic reforms and fiscal measures.

The inflow is expected to strengthen Pakistan’s foreign exchange reserves and provide short-term relief for an economy struggling with external financing pressures, high inflation and slow growth.

Pakistan has relied heavily on IMF support in recent years to stabilize its economy. The country’s ongoing program requires Islamabad to implement policy reforms, including tighter fiscal discipline, reduced energy subsidies and steps to increase revenue collection.

Economists say the latest tranche will offer breathing room but emphasize that Pakistan must continue structural reforms to secure long-term economic stability.