The Executive Board of the International Monetary Fund (IMF) is set to meet on May 8 to decide on the approval of more than $1.2 billion in financial assistance for Pakistan under its ongoing lending programmes.
According to official sources, the expected tranche includes nearly $1 billion under Pakistan’s $7 billion Extended Fund Facility (EFF) and around $210 million under the Resilience and Sustainability Facility (RSF). The release of funds is contingent upon the successful completion of recent programme reviews.
The upcoming board meeting follows a staff-level agreement reached in March between Pakistan and IMF officials. Under that agreement, Islamabad committed to a series of policy actions aimed at strengthening public finances, improving macroeconomic stability, and accelerating structural reforms across key sectors of the economy.
During the negotiations, discussions also focused on sensitive fiscal measures, including adjustments in fuel pricing, rationalisation of subsidies, and achieving petroleum levy collection targets as part of Pakistan’s broader fiscal consolidation strategy.
The IMF has acknowledged gradual improvement in Pakistan’s economic conditions. It noted that inflation has shown signs of moderation, external financing buffers have strengthened, and investor confidence has improved in recent months. However, the Fund also cautioned that external risks—such as geopolitical tensions and fluctuations in global energy prices—could affect the country’s recovery path.
If the Executive Board grants approval, total disbursements to Pakistan under both the EFF and RSF programmes are expected to reach approximately $4.5 billion.
On its part, Pakistan has reiterated its commitment to maintaining fiscal discipline, expanding the tax base, controlling expenditures, and enhancing social protection mechanisms for vulnerable segments of society. Officials are also continuing discussions with the IMF regarding flexibility in framing the upcoming national budget.
