The International Monetary Fund (IMF) Executive Board is scheduled to meet on May 9 to consider Pakistan’s request for a new $1.3 billion loan under its climate resilience programme, alongside the first review of the country’s ongoing $7 billion bailout, the IMF announced.
According to the IMF website, the session will include the initial review under the Extended Fund Facility (EFF) and Pakistan’s request for funding through the Resilience and Sustainability Facility (RSF).
Finance Minister Muhammad Aurangzeb had earlier indicated during his trip to Washington that the board’s approval was expected in early May.
If approved, the meeting will lead to the disbursement of a $1 billion tranche from the $7 billion package secured by Pakistan in 2024. The IMF-backed programme has been a crucial support for Pakistan’s struggling economy, helping to secure external funding and restore investor confidence.
The agreement, reached in July 2024, is a three-year plan designed to solidify macroeconomic stability while laying the foundation for inclusive and sustainable growth.
The EFF programme spans 37 months and includes six performance reviews. The upcoming tranche disbursement is contingent on the successful completion of this first review.
In March, Pakistan and the IMF concluded the first semi-annual review on a positive note, with no additional tax measures required.
In a post-review statement, IMF mission chief Nathan Porter noted that “programme implementation has been strong,” highlighting progress in fiscal consolidation to reduce public debt, tight monetary policy to manage inflation, and reforms in the energy sector to cut costs and enhance efficiency.
Additionally, a separate technical team from the IMF visited Pakistan to evaluate the country’s request for over $1 billion in climate resilience funding.
