ISLAMABAD: The State Bank of Pakistan (SBP) announced on Wednesday that it has received $1.02 billion (SDR 760 million) from the International Monetary Fund (IMF) as part of the second tranche under the Extended Fund Facility (EFF) programme.
According to the central bank, the funds will be reflected in the country’s foreign exchange reserves for the week ending May 16, 2025.
This development follows the IMF Executive Board’s completion of the first review of Pakistan’s economic reform programme under the EFF. The review allowed Pakistan to access approximately $1 billion in immediate funds, bringing total disbursements under the programme to $2.1 billion.
In addition, the IMF also approved Pakistan’s request for a new arrangement under the Resilience and Sustainability Facility (RSF), which aims to support the country in managing climate-related challenges. Under this facility, Pakistan will have access to around $1.4 billion (SDR 1 billion).
The staff-level agreement between Pakistan and the IMF was reached in July 2024, with funding of about $7 billion (SDR 5.32 billion). It was later approved by the IMF Board in September 2024.
On the other hand, virtual discussions between Pakistan and the IMF on the upcoming federal budget began on Wednesday (May 14), after the IMF mission delayed its visit to Islamabad due to regional security concerns.
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Sources said the delay was caused by increased tensions and air travel disruptions linked to Indian aggression. However, the IMF team is now expected to arrive in Islamabad by the weekend, subject to security conditions.
The budget talks, which started virtually, will continue until May 16. The IMF team is scheduled to be in Islamabad from May 18 to May 23 for the final round of discussions. Officials have assured that the change in schedule will not affect the progress or timelines of the ongoing programme.
