The International Monetary Fund (IMF) has approved a combined $2.3 billion in new funding for Pakistan, comprising the second tranche of the $7 billion Extended Fund Facility (EFF) and a fresh package under the Resilience and Sustainability Facility (RSF).
The approvals came during an Executive Board meeting on Friday, May 9, despite an unsuccessful attempt by India to block the move.
The IMF approved the disbursement of $1 billion as part of the second tranche under the EFF, following Pakistan’s improved fiscal performance and progress on key structural benchmarks.
In addition, the Board sanctioned a $1.3 billion facility under the RSF, aimed at bolstering Pakistan’s climate resilience. Unlike the EFF disbursement, the RSF funds will be released gradually over the next 28 months.
The decision follows a series of discussions between the IMF team—led by Mission Chief Nathan Porter—and Pakistani authorities, held from February 24 to March 14 in Karachi and Islamabad, followed by virtual talks. A staff-level agreement reached in March 2025 laid out a reform agenda supported by both federal and provincial governments.
The IMF has stated that the combined program builds on Pakistan’s macroeconomic stabilization over the past year, focusing on strengthening public finances, reducing inflation, rebuilding external reserves, and eliminating structural distortions to unlock private-sector-led growth.
With this latest development, Pakistan not only secures critical financial support but also strengthens its standing with international partners amid ongoing economic reform efforts.
