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Pakistan Awaits IMF Board Nod for $1bn Tranche in May
Pakistan's $1bn IMF tranche under EFF expected in early May after first review. The programme aims to stabilise the economy and boost climate resilience.
ND
by News Desk
2025-04-29
Pakistan Awaits IMF Board Nod for $1bn Tranche in May

According to the International Monetary Fund (IMF) website, the organisation will soon conduct its first review under the Extended Arrangement under the Extended Fund Facility (EFF), in tandem with Pakistan’s request for support under the Resilience and Sustainability Facility (RSF).

Finance Minister Muhammad Aurangzeb, during a recent visit to Washington, stated that the IMF Executive Board is expected to approve the disbursement in early May. The approval would release a $1 billion tranche from the three-year, $7 billion loan package secured in July 2024.

This IMF programme has been pivotal in stabilising Pakistan’s fragile economy by providing critical external financing and restoring investor confidence.

The 37-month EFF programme includes six performance reviews, with each tranche contingent on successful evaluations. In March, the IMF concluded its first biannual review of the agreement with Pakistan on a positive note and did not demand additional revenue measures.

In a post-review statement, IMF mission chief Nathan Porter highlighted that the programme implementation had shown strong progress. He noted key areas of advancement including fiscal consolidation efforts, maintaining a tight monetary policy to contain inflation, and energy sector reforms to reduce costs and enhance viability.

Additionally, a separate technical IMF mission has been working with Pakistani authorities on a request for over $1 billion in financing under the RSF to boost the country’s climate resilience.

If approved, the IMF’s support will not only help Pakistan manage its macroeconomic challenges but also pave the way for sustainable and inclusive growth amid growing environmental pressures.
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IMF

finance

PakistanEconomy
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