Karachi, May 14, 2025 – The State Bank of Pakistan (SBP) confirmed on Wednesday that it has received a $1.023 billion disbursement from the International Monetary Fund (IMF) under the ongoing Extended Fund Facility (EFF) program.
This latest tranche, equivalent to SDR 760 million, marks a significant step forward in Pakistan’s engagement with the IMF as it continues to address economic challenges and implement structural reforms.
In its official statement, the SBP announced that the inflow from the IMF will be reflected in Pakistan’s foreign exchange reserves for the week ending May 16, 2025. The increase in reserves is expected to support external account stability and improve the country’s ability to manage upcoming debt payments and import needs.
The transfer follows the IMF Executive Board’s completion of the first review of the EFF program on May 9, 2025. This review allowed Pakistani authorities to draw nearly $1 billion in support, acknowledging the progress made in key economic reforms. According to the IMF, the SBP and the government have shown strong implementation of the program, which has contributed to stabilizing financing conditions and supporting the early signs of an economic recovery.
Going forward, the IMF emphasized that policy priorities for Pakistan must include structural reforms to enhance productivity, improve governance in state-owned enterprises (SOEs), strengthen the energy sector, and build climate resilience. These goals align with long-term objectives set by the SBP to promote sustainable economic growth.
Additionally, the IMF Executive Board approved Pakistan’s request for an arrangement under the Resilience and Sustainability Facility (RSF), which will grant access to approximately $1.4 billion. This new facility aims to help Pakistan mitigate climate-related risks and bolster economic resilience against natural disasters.
With continued cooperation between the SBP and the IMF, Pakistan is poised to stabilize its macroeconomic environment. The latest IMF tranche not only strengthens foreign exchange reserves but also reinforces the commitment of both institutions to restoring economic confidence and advancing critical reforms.