Pakistan receives $1.3 billion from IMF under EFF, climate facility

ISLAMABAD: Pakistan has received $1.3 billion from the International Monetary Fund (IMF) after the lender’s executive board approved the disbursement earlier this month under its lending and climate resilience programmes, the central bank said on Wednesday.

The State Bank of Pakistan confirmed receipt of the funds, saying the amount was released under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

The IMF executive board approved the tranche on May 8 as part of Pakistan’s ongoing economic reform programme aimed at stabilising the economy and rebuilding foreign exchange reserves.

The central bank said the inflow would be reflected in the country’s foreign exchange reserves for the week ending May 15.

The latest disbursement comes as Pakistan seeks to strengthen its external financing position and maintain momentum on reforms agreed with the IMF.

Separately, an IMF delegation led by the mission chief arrived at Pakistan’s finance ministry on Wednesday to begin discussions on the upcoming federal budget, revenue measures and structural reforms.

Officials familiar with the talks said discussions would focus on new budget targets, tax revenue collection and fiscal consolidation measures for the next financial year.

The two sides are also expected to review progress on energy sector reforms and the government’s privatisation programme, which are key conditions under the IMF-backed programme.

Pakistan has relied on IMF support in recent years to avert a balance of payments crisis and unlock additional funding from bilateral and multilateral lenders.