IMF board approves $1.32 billion tranche for Pakistan

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 9th May, 2026) The Executive board of International Monetary Fund (IMF) has approved $1.32 billion financing for Pakistan under its under its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes.

“The IMF Executive Board completed the third review of the Extended Arrangement under the Extended Fund Facility (EFF) and the second review of the arrangement under the Resilience and Sustainability Facility (RSF), allowing the authorities to draw the equivalent of about US$1.1 billion and about US$220 million, respectively,” said an IMF statement received here in the wee hours of Saturday

This brings total disbursements under the two arrangements to about $4.8 billion (SDR 3,348 billion), it added.

The statement said, Pakistan’s strong implementation, despite the middle East war, has maintained economic stability and improved financing and external conditions.

The shocks emanating from the Middle East war underline the continued importance of maintaining strong policies to continue building resilience and of moving ahead with structural reforms to achieve sustainable long-term growth.

Policy priorities remain centered on maintaining macroeconomic stability and advancing reforms to strengthen public finances, enhance competition, raise productivity and competitiveness, bolster the social safety net and human capital, reform SOEs, and improve public service provision and energy sector viability.

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Fiscal performance has been strong, with a Primary surplus of 1.6 percent of GDP expected to be achieved in FY26, in line with targets. Inflation has increased as higher global commodity prices have passed through to domestic energy prices. Gross reserves stood at $16 billion at end-December, up from $14.5 billion at end-June 2025, and are projected to continue to be rebuilt in the next year and over the medium term.

It is pertinent to mention here that Pakistan’s 37-month EFF arrangement was approved on September 25, 2024, and aims to build resilience and enable sustainable growth. The 28-month RSF arrangement was approved on May 9, 2025, and is supporting the country efforts to reduce vulnerabilities to natural disasters and to build economic and climate resilience.

Key priorities include (i) entrenching macroeconomic stability through consistent implementation of sound macro policies, including rebuilding international reserve buffers and broadening the tax base; (ii) advancing reforms to strengthen competition and raise productivity and competitiveness; and (iii) reforming SOEs and improving public service provision, developing human and physical capital by expanding health, education, and social protection spending, restoring energy sector viability, and intensifying anti-corruption efforts.