6 days Ago
The International Monetary Fund (IMF) Executive Board is set to meet on May 9 to review Pakistan’s financial arrangements. The meeting will discuss Pakistan’s $1.3 billion climate resilience loan and the first review of its $7 billion bailout programme.
This review is part of the ongoing 37-month Extended Fund Facility (EFF) arrangement with the IMF. The IMF website confirmed that the meeting would focus on two key areas. One is the review under the Extended Fund Facility, and the second is a request for an arrangement under the Resilience and Sustainability Facility (RSF).
Finance Minister Muhammad Aurangzeb, during his recent Washington visit, had expressed confidence in the IMF Board’s approval. Approval from the board will release a $1 billion tranche under the current programme, which was secured in 2024. This funding is crucial for Pakistan as it supports the country’s fragile economy.
The IMF’s assistance has helped stabilize Pakistan’s financial situation, boosting market confidence and securing external financing. The $7 billion IMF package, agreed upon in 2024, aims to enhance Pakistan’s macroeconomic stability and promote inclusive, resilient growth. The IMF has praised Pakistan’s progress, particularly in fiscal consolidation and maintaining tight monetary policies.
Pakistan’s success in the upcoming review will determine the release of additional funding to support its recovery..
