IMF to Review Pakistan's USD 1.3 bn Package on May 9

Islamabad, Apr 29 (PTI) The International Monetary Fund Executive Board will meet on May 9 to discuss Pakistan's staff-level agreement for a new USD 1.3 billion arrangement under a climate resilience loan programme, along with the first review of the ongoing USD 7 billion bailout package.

The global lender announced that this will be the first review “under the Extended Arrangement Under the Extended Fund Facility (EFF)”, along with a request for an arrangement under the Resilience and Sustainability Facility (RSF), Dawn said Tuesday.

Previously, Finance Minister Muhammad Aurangzeb during his visit to Washington had said he also expected the International Monetary Fund (IMF) Executive Board to approve it in early May.

Approval from the board would trigger the disbursement of a USD 1 billion tranche under the programme, which Pakistan secured in 2024.

The IMF programme has played a critical role in stabilising Pakistan's fragile economy, providing much-needed external financing and boosting market confidence.

Pakistan and the IMF had reached a three-year, USD 7 billion aid package deal in July 2024, with the new programme set to allow the country to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth”.

The ongoing 37-month EFF programme consists of six reviews over the life of the bailout, and the release of the next tranche of approximately USD 1 billion will be contingent on the success of the performance review.

In March, Pakistan and the IMF had concluded the first biannual review of the USD 7 billion loan programme on a positive note, without imposing additional revenue measures.

In an end-of-mission statement, mission chief Nathan Porter said: “Programme implementation has been strong, and the discussions have made considerable progress in several areas, including the planned fiscal consolidation to durably reduce public debt, maintenance of sufficiently tight monetary policy to maintain low inflation, acceleration of cost-reducing reforms to improve energy sector viability.”

A separate technical mission from the IMF also visited the country on Pakistan's request for over USD 1 billion in additional financing for climate resilience, Dawn said, quoting a statement from the IMF.