Pakistan eyes $2.3bn inflows through IMF, commercial loan before June 30

Pakistan is set to secure a combined $2.3 billion in financial injections before June 30, 2025, with $1.3 billion expected from the International Monetary Fund (IMF) and $1 billion from a commercial loan negotiated with Standard Chartered Bank (SCB), according to a report by The News. 

The commercial loan from SCB, which is being offered at a mark-up of over 7.33%, would have come at a higher interest rate of 10-11% without the ADB’s guarantee, according to official sources. 

The loan is set to be disbursed within the current financial year, with the rate structured as SOFR (Secured Overnight Financing Rate) plus 3%, which currently stands at 4.33%.

The country is also seeking a guarantee from the Asian Development Bank (ADB) to secure a favorable interest rate for the loan under the Domestic Resource Mobilisation Programme.

The ADB is expected to approve a $500 million guarantee on May 28, 2025, which would facilitate Pakistan’s ability to secure the $1 billion loan from SCB on favorable terms. This is part of a broader $1 billion policy loan from the ADB, half of which will be used to back the commercial loan.

In parallel, the IMF’s Executive Board will meet on May 9, 2025, to review Pakistan’s progress under the Extended Fund Facility (EFF). Pakistan is expected to receive $1 billion as part of the first EFF review, with an additional $200 to $300 million through the first tranche of the Resilience and Sustainability Fund (RSF). 

This influx of $2.2 to $2.3 billion will provide a significant boost to Pakistan’s foreign exchange reserves, which stood at $15.4 billion as of April 18, 2025.

These financial inflows are expected to help stabilise Pakistan’s foreign reserves and provide necessary support for its economy.