The Executive Board of the International Monetary Fund (IMF) is scheduled to convene on May 9 to review Pakistan’s staff-level agreement for a $1.3 billion climate resilience loan, as well as the first assessment of the country’s ongoing $7 billion bailout programme, according to the IMF’s official website.
The session will mark the initial review under the Extended Fund Facility (EFF) and include consideration for support through the Resilience and Sustainability Facility (RSF).
During his recent visit to Washington, Finance Minister Muhammad Aurangzeb had expressed confidence that the IMF board would grant approval by early May. If approved, the decision would unlock a $1 billion tranche as part of the broader financial support framework agreed upon in 2024.
The IMF programme has been pivotal for Pakistan’s economic recovery, helping stabilize external finances and restore investor confidence amid ongoing fiscal challenges.
The three-year, $7 billion EFF agreement, finalized in July 2024, is aimed at reinforcing macroeconomic stability and paving the way for more inclusive and resilient economic growth.
The EFF includes six scheduled performance reviews. The upcoming $1 billion disbursement is tied to the successful completion of the current review, which concluded in March with favorable outcomes. The IMF did not impose new tax measures in that review.
IMF Mission Chief Nathan Porter acknowledged Pakistan’s progress, stating that the programme’s implementation has been strong. He highlighted key areas such as fiscal tightening to reduce debt, strict monetary policy to manage inflation, and reforms in the energy sector to enhance sustainability.
Separately, a technical delegation from the IMF visited Pakistan to discuss the country’s request for over $1 billion in additional financing under the climate resilience initiative.
