Pakistan has obtained $1.3 billion from the International Monetary Fund following the approval of the disbursement by the IMF’s executive board earlier this month. The funds were released under two key programmes: the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF), the State Bank of Pakistan confirmed on Wednesday.
The IMF executive board gave the green light to this tranche on May 8 as part of Pakistan’s ongoing economic reform agenda, which aims to stabilise the national economy and rebuild foreign exchange reserves. The central bank noted that the inflow would be reflected in the country’s foreign exchange reserves for the week ending May 15.
In a significant development, this latest disbursement arrives as Pakistan continues to bolster its external financing position and sustain the momentum on reforms agreed upon with the IMF. Meanwhile, an IMF delegation led by the mission chief arrived at Pakistan’s finance ministry on Wednesday to initiate discussions on the forthcoming federal budget, revenue enhancement measures, and structural reforms.
Officials involved in the talks indicated that the discussions would concentrate on setting new budgetary targets, improving tax revenue collection, and implementing fiscal consolidation strategies for the next fiscal year. Additionally, both parties are expected to assess progress on energy sector reforms and the government’s privatisation initiatives, which remain critical conditions under the IMF-supported programme.
Pakistan has depended on IMF assistance in recent years to prevent a balance of payments crisis and to unlock further funding from bilateral and multilateral lenders, reinforcing its economic stability efforts.
