The Executive Board of the International Monetary Fund (IMF) will convene on May 9 to assess Pakistan’s economic standing. The meeting will focus on two key issues: a new $1.3 billion climate resilience loan and the first review of Pakistan’s ongoing $7 billion bailout package, according to the IMF.
This review marks the first under the Extended Arrangement Under the Extended Fund Facility (EFF) and includes a separate request for funds under the Resilience and Sustainability Facility (RSF).
Approval is expected to release a $1 billion tranche under the existing EFF program, initially secured in 2024. This program, a three-year agreement reached in July 2024, aims to bolster macroeconomic stability and foster more inclusive and resilient growth within Pakistan.
Pakistan’s Finance Minister, Muhammad Aurangzeb, anticipates board approval in early May. The IMF’s ongoing program has been vital in stabilizing Pakistan’s economy, providing crucial external financing and enhancing market confidence.
The IMF’s March review of the $7 billion loan program concluded positively, without imposing additional revenue measures, citing strong program implementation and progress in fiscal consolidation, monetary policy, and energy sector reforms. A separate IMF technical mission recently visited Pakistan to discuss the additional climate resilience financing request.
