ISLAMABAD: Pakistan has received the second loan tranche from the International Monetary Fund (IMF) under its ongoing Extended Fund Facility (EFF), private news channel reported today, quoting sources from the Ministry of Finance.
According to the sources, the IMF transferred $1 billion to the State Bank of Pakistan (SBP), which will be reflected in the central bank’s foreign exchange reserves on May 16. This disbursement comes after the IMF Executive Board approved the tranche on May 9, marking a significant milestone in Pakistan’s efforts to stabilize its struggling economy.
In a statement, the IMF confirmed, “The Executive Board completed the first review under the Extended Fund Facility Arrangement, allowing Pakistan to draw the equivalent of approximately $1 billion.”
The disbursement follows last month’s staff-level agreement between Pakistan and the IMF on the first review of the 37-month, $7 billion EFF. Additionally, the IMF and Pakistani authorities agreed on a new 28-month, $1.3 billion Resilience and Sustainability Facility (RSF) to address climate-related vulnerabilities and natural disaster preparedness.
The IMF noted that the RSF aims to strengthen Pakistan’s resilience to environmental shocks and support sustainable development initiatives. The Executive Board also approved this new RSF arrangement, providing about $1.4 billion in financing.
“The IMF team has reached a staff-level agreement with the Pakistani authorities on the first review under the EFF and a new RSF arrangement with access to around $1.3 billion. Upon Board approval, Pakistan can access approximately $1 billion, bringing total disbursements under the program to $2 billion,” the IMF said.
The inflows are expected to bolster Pakistan’s foreign reserves, improve investor confidence, and support the government’s fiscal reform efforts amid ongoing economic challenges.
