IMF board approves $1.32 billion funding for Pakistan

The IMF Executive Board approved more than $1.32 billion in funding for Pakistan on Friday, the lender confirmed in a statement on Saturday.

The approval follows Pakistan's successful completion of the third Extended Fund Facility review and the second Resilience and Sustainability Facility review.

How much did the IMF approve for Pakistan and what does it cover?

The disbursement comprises around $1.1 billion under the EFF and around $220 million under the RSF.

Total disbursements under both arrangements now stand at approximately $4.8 billion. Pakistan and the IMF had reached a staff-level agreement on March 27, paving the way for the board's approval.

What did the IMF say about Pakistan's economic performance?

The IMF said Pakistan's policy efforts under the EFF have delivered significant progress in stabilizing the economy and rebuilding confidence amid a challenging global environment, including the ongoing Middle East war.

Fiscal performance has been strong, with a primary surplus of 1.6% of GDP expected to be achieved in FY26, in line with targets. Reserves stood at $16 billion at end-December 2025, up from $14.5 billion at end-June 2025.

The Fund acknowledged that inflation has increased due to higher energy prices. It praised the State Bank of Pakistan for maintaining an appropriately tight monetary policy stance to keep inflation in check.

The IMF also called for a flexible exchange rate and stressed the need to continue rebuilding reserves.

What conditions did the IMF set for Pakistan going forward?

IMF Deputy Managing Director Nigel Clarke said reforms have helped Pakistan achieve macroeconomic stability and rebuild fiscal and foreign exchange buffers. He called on Pakistan to maintain strong macroeconomic policies while accelerating reform efforts to manage further shocks and foster higher sustainable medium-term growth.

The IMF also stressed the importance of ensuring all banks remain adequately capitalized and called for addressing capital shortfalls at microfinance banks.

How many IMF tranches has Pakistan received under the EFF program?

Pakistan secured the 37-month EFF program in September 2024. It has since received four tranches of approximately $1 billion each, disbursed in September 2024, May 2025, December 2025, and May 2026.

Under the RSF program, Pakistan is also expected to receive an initial disbursement of $200 million to support climate-related initiatives.