The State Bank of Pakistan (SBP) announced on Wednesday that the country has received a second tranche of $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF). The amount, equivalent to 760 million Special Drawing Rights (SDR), will be reflected in the foreign exchange reserves for the week ending May 16.
This disbursement follows the IMF Executive Board’s completion of the first review of Pakistan’s economic reform programme, which is supported by the EFF arrangement approved in 2024. With this latest installment, total disbursements under the programme have reached approximately $2.1 billion (SDR 1.52 billion).
In the same session, the IMF also approved Pakistan’s request for funding under the Resilience and Sustainability Facility (RSF), granting access to around $1.4 billion (SDR 1 billion). The RSF aims to assist countries vulnerable to climate change and natural disasters by promoting long-term macroeconomic stability and resilience.
The broader EFF agreement—initially reached at the staff level in July 2024 and formally approved by the IMF Board in September—totals SDR 5.32 billion, or roughly $7 billion.
Economists view the IMF programme as vital to Pakistan’s financial stability. Beyond bolstering the country’s foreign reserves, it serves as a foundation for structural reforms and helps restore investor confidence. The latest funding is expected to ease balance of payment pressures and support broader economic recovery efforts.
