Islamabad, Apr 29, 2025: The International Monetary Fund (IMF) has officially announced that its Executive Board will evaluate Pakistan’s economic progress under the first review of the Extended Fund Facility (EFF) on May 9.
The session will also discuss proposed changes in performance benchmarks and Pakistan’s potential access to the Resilience and Sustainability Facility (RSF).
As per the IMF’s updated calendar published on its official site, the agenda now includes the decision on releasing the upcoming instalment of Pakistan’s $7 billion bailout package.
This disbursement is part of a broader 37-month economic reform program backed by the EFF, initially approved following a staff-level agreement reached on July 12, 2024.
Alongside the EFF discussions, the IMF board is also set to deliberate over Pakistan’s request for financing under the RSF—a relatively new funding stream aimed at helping vulnerable economies tackle climate-related and long-term structural challenges.
If approved, this facility could grant Pakistan an additional $1.2 billion, potentially supporting sustainable development initiatives in the country.
Pakistan had earlier secured the initial disbursement of $1.1 billion as the first tranche under the EFF, with subsequent payments due every six months based on the fulfillment of performance indicators.
The upcoming tranche is anticipated in the following month, pending successful review and adherence to economic reforms agreed upon with the IMF.
The timely completion of this review is crucial for Pakistan as it navigates fiscal pressures, inflationary challenges, and a fragile external account.
Approval of the next loan instalment would not only provide essential financial support but also boost investor confidence and stabilize foreign exchange reserves.
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With macroeconomic stability at the heart of the IMF’s program, Pakistan is expected to continue tightening its fiscal policy, reducing subsidies, and improving tax collection.
These steps are considered necessary to achieve long-term economic resilience and attract foreign investment.
As international observers and financial markets await the IMF board’s final decision, the outcome of the May 9 review holds significant weight for Pakistan’s economic direction and credibility in global financial circles.
