Pakistan is expected to receive another $3.6 billion from the International Monetary Fund over the next 14 months under two ongoing loan programmes, according to official documents.
However, the release of each tranche will remain conditional on the government meeting IMF targets and implementing agreed economic reforms.
The additional financing will be provided through the Extended Fund Facility and the Resilience and Sustainability Facility.
According to the documents, the combined value of the two IMF programmes stands at $8.4 billion. Of this amount, around $4.8 billion has already been disbursed to Pakistan, while the remaining $3.6 billion is expected to be released over the next 14 months.
Every disbursement will depend on Pakistan’s performance against the conditions, benchmarks and targets agreed with the IMF.
Next IMF review expected in Sept
The next economic review under the EFF and RSF programmes is expected to take place in September. Sources said an IMF mission may also visit Pakistan during the month to assess progress on the implementation of the programme.
The review will determine whether Pakistan has met the required targets and qualifies for the release of further loan tranches.
IMF stresses fiscal discipline and tax reforms
According to sources, the IMF has placed strong emphasis on maintaining fiscal discipline and reducing the budget deficit. Pakistan has also been asked to increase tax collection and improve revenue mobilisation as part of the ongoing programme.
The Fund is expected to closely monitor the government’s progress on these measures during the next review.
Energy-sector reforms remain another key condition attached to the IMF programme.
The government is required to take steps to reduce circular debt, improve the financial performance of the power sector and address structural weaknesses that continue to burden the economy.
Progress in these areas will be important for ensuring the timely release of future IMF funding.
Privatisation, climate reforms also part of programme
The IMF has also called for progress on the privatisation of state-owned enterprises. In addition, Pakistan must implement reforms aimed at addressing climate-related risks and improving economic resilience.
These measures form an important part of the Resilience and Sustainability Facility, which is specifically linked to climate change and long-term environmental challenges.
EFF to provide $7bn by Sept 2027
According to the documents, Pakistan will receive a total of $7 billion under the Extended Fund Facility by September 2027. The EFF is aimed at supporting macroeconomic stability, structural reforms and longer-term economic recovery.
A further $1.4 billion will be provided under the climate-focused Resilience and Sustainability Facility.
Together, the two programmes are expected to provide Pakistan with $8.4 billion, provided the government continues to meet the IMF’s conditions and reform commitments.
