Pakistan is likely to receive more than $1.2 billion from the International Monetary Fund (IMF) as the lender’s Executive Board meets today to review the country’s economic progress under its ongoing financial assistance programme. The expected approval is being viewed as a major boost for Pakistan’s fragile economy amid improving macroeconomic indicators and stabilizing foreign exchange reserves.
According to reports, Pakistan is expected to secure around $1 billion under the Extended Fund Facility (EFF), while an additional $200 million to $210 million may be released under the Resilience and Sustainability Facility (RSF). The funds are likely to be transferred to the State Bank of Pakistan shortly after formal approval by the IMF board.
Finance Minister Muhammad Aurangzeb expressed optimism ahead of the crucial meeting, stating that Pakistan has fulfilled all major conditions agreed with the IMF under the staff-level agreement reached in March. Officials say the government implemented difficult fiscal reforms, including tax measures and energy sector adjustments, to secure the next tranche.
The IMF programme has played a critical role in supporting Pakistan’s economy following severe financial challenges, including rising inflation, low foreign reserves, and external debt pressures. Analysts believe the latest tranche will help strengthen investor confidence, support the rupee, and improve Pakistan’s balance of payments position.
Reports also indicate that Pakistan’s current account has shown signs of improvement due to higher remittances and export growth. Government officials expect foreign exchange reserves to rise further in the coming months if the IMF approval goes through as anticipated.
The IMF board meeting comes at a crucial time as Pakistan prepares its upcoming federal budget and faces economic uncertainty linked to rising regional tensions and global oil price volatility. Economic experts warn that continued fiscal discipline and structural reforms will remain essential for long-term stability.
Pakistan secured the 37-month IMF programme in 2024 to stabilize the economy and implement structural reforms. Since then, the country has received several tranches under the agreement, with today’s expected approval set to further strengthen ties between Islamabad and the global lender.