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Pakistan Receives $1.023 Billion IMF Tranche Under EFF
Pakistan receives $1.023 billion from IMF under EFF, boosting forex reserves to $11.355bn. PM Shehbaz hails progress, says India’s propaganda has failed.
ND
by News Desk
2025-05-14
Pakistan Receives $1.023 Billion IMF Tranche Under EFF

Pakistan has received the second tranche of Special Drawing Rights (SDR) worth $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme, the State Bank of Pakistan (SBP) confirmed on Wednesday.

According to a post by SBP on X (formerly Twitter), the amount will be reflected in the country’s foreign exchange reserves for the week ending May 16. This inflow is expected to push Pakistan's reserves to approximately $11.355 billion.

Last week, the IMF Executive Board approved the immediate disbursement of $1 billion to Pakistan following the completion of the first review of the country’s economic reform programme under the EFF. This brought the total disbursement under the arrangement to approximately $2.1 billion (SDR 1.52 billion).

In addition, the IMF approved Pakistan’s request for a $1.4 billion Resilience and Sustainability Facility (RSF) arrangement aimed at boosting climate resilience and reducing vulnerability to natural disasters.

In its statement, the IMF acknowledged Pakistan’s significant progress under the EFF despite a challenging global environment. “Fiscal performance has been strong, with a primary surplus of 2% of GDP achieved in the first half of FY25,” it said, affirming that Pakistan is on track to meet its end-of-year target of 2.1%.

April inflation fell to a historic low of 0.3%, and the SBP has cut the policy rate by 1100 basis points since June 2025 due to improving inflation and economic stability. Gross reserves have improved from $9.4 billion in August 2024 to $10.3 billion by the end of April 2025. They are projected to reach $13.9 billion by June 2025.

Prime Minister Shehbaz Sharif welcomed the IMF’s decision, stating that Pakistan’s economic outlook is improving. He also criticized India, accusing it of attempting to derail the country’s economic progress through diplomatic pressure.

“The failure of India’s high-handed tactics and the approval from international institutions show that the world sees through India's propaganda. The country's economy is stabilizing and moving toward development,” the PMO said in a statement.

The combined support from the IMF under both the EFF and RSF signals growing confidence in Pakistan’s economic direction and reforms, offering a much-needed boost to macroeconomic stability and investor confidence.

 
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