The IMF Executive Board is set to meet in Washington today, where approval is expected for Pakistan’s next $1.2 billion tranche under its ongoing loan program.

Officials say Pakistan has successfully completed all required economic benchmarks ahead of the meeting.

According to the IMF, the Executive Board will review Pakistan’s staff-level agreement, paving the way for two key disbursements:

A $1 billion third tranche of the Extended Fund Facility (EFF)
$200 million under the Resilience and Sustainability Facility (RSF) for climate-focused initiatives

This approval will bring Pakistan one step closer to completing its 37-month, $7 billion loan program initiated in September 2024.

Loan program progress: Tranches and timelines

Under the EFF program, Pakistan received the first $1 billion tranche in September 2024. The second $1 billion tranche was transferred in May 2025, while the upcoming third $1 billion tranche is set for approval today.

Under the RSF program, Pakistan will receive the first $200 million tranche of the $1.3 billion facility this month

Officials say these disbursements support economic recovery, climate resilience, and long-term fiscal reforms.

Pakistan’s economic progress praised

The Ministry of Finance reported that Pakistan met all economic targets ahead of the IMF board meeting. Officials also confirmed that the country successfully passed the second economic review of the $7 billion program.

The ministry said Pakistan has made significant progress in economic recovery, with improvements in the current account and foreign exchange reserves. For the first time in 14 years, Pakistan recorded a current account surplus.

Inflation has remained under control, earning the IMF’s confidence in Pakistan’s fiscal reforms, officials added.

Reforms, governance, global confidence

Under the IMF program, a Governance and Corruption Diagnosis Report has been released -- one of the major structural requirements. The IMF has emphasized energy sector reforms, including debt reduction and enhanced governance.

The ministry said Pakistan’s economy is recovering after last year’s floods, with climate-related measures already integrated into policy frameworks. Officials also highlighted that external financial assistance has increased market confidence, contributing to improved economic stability.

The government’s reform agenda has gained global endorsement, and major provisions of the program have been completed, officials noted.

Finance Ministry officials say Pakistan is now awaiting formal approval from the IMF Executive Board to unlock the next tranche.
They stressed that progress toward stability is ongoing, with the fiscal deficit reduced and foreign exchange reserves strengthened.