Pakistan's State Bank said on May 12 that it had received approximately $1.3 billion from the International Monetary Fund under two lending programs.
The inflows follow an IMF Executive Board meeting on May 8 that approved disbursements under the Extended Fund Facility and the Resilience and Sustainability Facility. The funds are expected to bolster the country's foreign exchange reserves and support the domestic currency.
What did Pakistan receive from the IMF in May 2026?
Pakistan received a total of SDR 914 million, equivalent to roughly $1.3 billion, combining approximately $1.1 billion under the Extended Fund Facility and $220 million under the Resilience and Sustainability Facility.
The IMF Executive Board approved both disbursements on May 8. The State Bank said the inflows would be reflected in its reserves for the week ending May 15, 2026.
What did the IMF approve for Pakistan at its May 8 board meeting?
The IMF Executive Board completed the third review of Pakistan's 37-month Extended Fund Facility on May 8 and approved the disbursement of SDR 760 million. It also released a second tranche of SDR 154 million under the Resilience and Sustainability Facility. Together, these approvals bring total disbursements under the current arrangement to approximately $4.8 billion.
Pakistan's EFF arrangement was originally approved on September 25, 2024, with the program designed to strengthen economic resilience and support sustainable growth.
Key priorities include maintaining macroeconomic stability through disciplined fiscal and monetary policies, rebuilding foreign exchange reserve buffers, and broadening the tax base. The program also targets reforms to improve competition and productivity, restructure state-owned enterprises, and strengthen public service delivery.
How is Pakistan's economy performing under the IMF program?
The IMF said Pakistan's policy measures under the program have helped stabilize the economy and restore confidence, despite a difficult global environment that includes the ongoing conflict in the Middle East.
Fiscal performance has remained strong, with a primary budget surplus of 1.6% of GDP projected for fiscal year 2026, in line with program targets.
Inflation has risen, however, as higher global commodity prices fed through to domestic energy prices. Gross foreign exchange reserves stood at $16 billion at the end of December, up from $14.5 billion at the end of June 2025. Reserves are expected to continue improving over the coming year and into the medium term.
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