International Monetary Fund (IMF) Executive Board convened in Washington, D.C., and approved the first review of Pakistan's $7 billion Extended Fund Facility (EFF), resulting in the immediate release of a $1 billion tranche.
The decision follows the staff-level agreement reached on March 25, 2025, between the IMF and Pakistani authorities.
In addition to the EFF, the IMF also endorsed a new 28-month Resilience and Sustainability Facility (RSF) arrangement for Pakistan, granting access to approximately $1.3 billion aimed at supporting climate resilience initiatives.
The IMF commended Pakistan's efforts in restoring macroeconomic stability, noting significant progress in reducing inflation to its lowest level since 2015, improving financial conditions, and strengthening external balances. However, the IMF also highlighted ongoing challenges, including a narrow tax base, weak governance, and insufficient investment in health, education, and infrastructure.
This approval marks a critical step in Pakistan's economic recovery efforts, providing much-needed external financing and boosting market confidence. The funds are expected to support structural reforms and promote sustainable growth in the country.
– PM welcomes approval of $1bn IMF tranche –
Prime Minister Shahbaz Sharif has expressed satisfaction over the International Monetary Fund’s (IMF) approval of a $1 billion tranche, praising his government’s economic team for their efforts.
The prime minister stated that, by the grace of Allah, Pakistan’s economic situation is improving and the country is on the path towards development.
He alleged that India is attempting to divert attention from Pakistan’s progress through unilateral acts of aggression. However, international institutions have responsibly dismissed India’s baseless propaganda, he added.
According to the prime minister, Indian efforts to derail the IMF programme have failed. He emphasised that the disbursement will support Pakistan’s economy in achieving stable and long-term recovery.
The prime minister said the government is working to enhance performance in the energy sector and implement comprehensive tax reforms.
He noted that improved economic indicators over the past fourteen months reflect the success of the government’s positive and consistent policies.
PM Shehbaz reaffirmed his government’s commitment to economic stability, effective governance, and sustainable planning for the country’s future.
