The International Monetary Fund’s Executive Board is scheduled to convene in the coming weeks to deliberate on the approval of a $1.2 billion loan tranche for Pakistan as part of its ongoing financial support arrangements. This development follows a staff-level agreement reached in March between Pakistan and the IMF.
Pakistan secured a staff-level agreement on March 27 covering two major financing programs: a $7 billion Extended Fund Facility (EFF) spanning 37 months, and a separate $1.4 billion Resilience and Sustainability Facility (RSF) lasting 28 months. Both agreements require formal approval from the IMF’s Executive Board before any funds can be disbursed.
Upon board approval, approximately $1 billion will be released under the EFF, with an additional $210 million expected from the RSF. This will bring the total disbursements under these programs to around $4.5 billion to date.
Earlier reports had suggested the IMF board might meet on May 8 to review Pakistan’s disbursement requests. However, the IMF’s resident representative in Pakistan, Mahir Binici, clarified that no specific date has been finalized yet, only confirming that the meeting will occur in the near future.
These financial arrangements are crucial for Islamabad as the country strives to stabilise its economy, bolster foreign exchange reserves, and support its weakening currency. The EFF was initially secured in September 2024, followed by the RSF agreement in May 2025.
In recent years, Pakistan has implemented extensive reforms under IMF programs, including subsidy reductions, broadening the tax base, privatising state-owned enterprises, and restructuring the power sector. The IMF acknowledges that these reforms have contributed to economic stabilization and improved market confidence.
Nonetheless, the IMF has cautioned that external challenges such as geopolitical tensions and fluctuating energy prices could pose risks to inflation, economic growth, and the external account balance.
