IMF to review $1.2B tranche for Pakistan on May 8

The International Monetary Fund is set to consider approving the next tranche of funding for Pakistan under its ongoing loan program, with a key Executive Board meeting scheduled for May 8, officials said.

The IMF Executive Board is expected to approve more than $1.2 billion as part of the broader $7 billion Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) arrangements.

Following the successful completion of the program’s third review, Pakistan is likely to receive about $1 billion. An additional $210 million is expected after the second review under the RSF.

Pakistan and the IMF reached a staff-level agreement last month, paving the way for the upcoming board approval.

The IMF mission and Pakistani authorities held discussions on the third review of the 37-month Extended Arrangement under the EFF and the second review of the 28-month arrangement under the RSF. While considerable progress was made, discussions will continue in the coming days, including to more fully assess the impact of recent global developments on Pakistan’s economy and the program.

“Program implementation under the EFF remained broadly aligned with the authorities’ commitments through end-February 2026.

Considerable progress was made in the discussions on policies ahead, including on sustaining the fiscal consolidation to strengthen public finances; maintaining a sufficiently tight monetary policy to ensure inflation remains durably within the State Bank of Pakistan’s target range; and advancing reforms to improve the viability of the energy sector.

Particular attention was paid to deepening structural reforms, given the authorities’ emphasis on accelerating growth, alongside efforts to strengthen social protection and rebuild health and education spending."