IMF board to meet in coming weeks on $1.2 billion Pakistan loan tranche

ISLAMABAD: The International Monetary Fund’s Executive Board will meet “in coming weeks” to consider approval of a $1.2 billion loan disbursement for Pakistan under its ongoing financing arrangements, an IMF official said on Sunday.

Pakistan reached a staff-level agreement (SLA) with the IMF in March covering its $7 billion, 37-month Extended Fund Facility (EFF) and a separate $1.4 billion, 28-month Resilience and Sustainability Facility (RSF).

The agreements are subject to approval by the IMF’s Executive Board before funds can be released.

The IMF said at the time that board approval would unlock about $1 billion under the EFF and around $210 million under the RSF, taking total disbursements under both programmes to roughly $4.5 billion.

Dawn reported that the IMF board was scheduled to meet on May 8 to review Pakistan’s disbursements. However, IMF resident representative in Pakistan Mahir Binici said no date had been finalised.

“The IMF Executive Board meeting will be taking place in coming weeks to discuss the SLA reached on March 27,” Binici said.

Both programmes are considered critical by Islamabad as it seeks to stabilise its economy, shore up foreign exchange reserves and support a weakening currency. The EFF was secured in September 2024, while the RSF was agreed in May 2025.

Pakistan has in recent years implemented wide-ranging reforms under IMF programmes, including subsidy cuts, tax base expansion, privatisation of state-owned enterprises and changes in the power sector.

The IMF has said Pakistan’s reform efforts have helped stabilise the economy and restore some market confidence, but it has also warned that global risks — including geopolitical tensions and volatile energy prices — could pressure inflation, growth and the external account.