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Pakistan Receives $1bn IMF Tranche, Boosting Foreign Reserves
ISLAMABAD– Pakistan has received the second tranche of $1.023 billion from the International Monetary Fund (IMF) under its Extended Fund Facility (EFF) program, the State Bank of Pakistan (SBP) announced on Wednesday.
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The funds, disbursed as Special Drawing Rights (SDRs), will be reflected in Pakistan’s foreign exchange reserves for the week ending May 16, the central bank said in a post on social media platform X.
Last week, the IMF Executive Board approved the immediate release of approximately $1 billion under the ongoing $3 billion EFF arrangement, bringing total disbursements under the program to $2.1 billion.
Additionally, the IMF greenlit a $1.4 billion Resilience and Sustainability Facility (RSF) to support Pakistan’s climate resilience efforts.
Economic Progress Recognized
In a statement on Friday, the IMF acknowledged Pakistan’s “significant progress” in stabilizing its economy despite global challenges.
It highlighted a primary fiscal surplus of 2% of GDP in the first half of FY25, putting the country on track to meet its year-end target.
Inflation dropped to a historic low of 0.3% in April, and foreign reserves rose to $10.3 billion by end-April, up from $9.4 billion in August 2024.
“The State Bank of Pakistan has cut the policy rate by 1,100 basis points since June 2025 amid steadier economic conditions,” the IMF noted.
Climate Resilience Support
The RSF funding aims to help Pakistan mitigate vulnerabilities to natural disasters and enhance long-term economic stability.
Prime Minister Shehbaz Sharif welcomed the IMF’s decision, calling it a sign of growing confidence in Pakistan’s reforms.
“The country’s economic situation has improved, and we are moving toward development,” the Prime Minister’s Office stated.
It also accused India of attempting to “sabotage” the IMF program through “false propaganda,” claims India has not publicly addressed.
Pakistan’s foreign reserves are projected to reach $13.9 billion by June 2025, reinforcing the government’s efforts to stabilize the economy.
