IMF board to review $1.21 billion disbursement for Pakistan on May 8 under EFF, RSF

The International Monetary Fund (IMF) has scheduled a May 8 executive board meeting to consider approval of over $1.21 billion for Pakistan under two ongoing programmes, including the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

Pakistan is set to receive about $1 billion following completion of the third review under the $7 billion Extended Fund Facility, along with around $210 million under the Resilience and Sustainability Facility after its second review.

The IMF had reached a staff-level agreement with Pakistan on March 27 for the release of these funds, subject to board approval. Since then, both sides have continued discussions on fuel pricing adjustments and subsidy reductions linked to petroleum levy targets.

The government has collected more than Rs1.2 trillion in petroleum levy during the first nine months of the fiscal year and is working toward its Rs1.468 trillion target. Authorities are also reviewing options to increase the levy on petrol or reintroduce it on diesel to offset revenue shortfalls from the Federal Board of Revenue.

The IMF has repeatedly emphasised the need to phase out fuel subsidies as part of fiscal consolidation measures. At the same time, Pakistan has sought flexibility in programme conditions, with further decisions expected to be incorporated into the upcoming budget.

According to the IMF, implementation under the programme remains aligned with objectives to strengthen public finances, keep inflation within the target range set by the State Bank of Pakistan, improve energy sector performance, and advance structural reforms alongside social protection measures.

Progress has also been reported under climate-related reforms supported by the Resilience and Sustainability Facility, with authorities continuing policy actions aimed at reducing exposure to climate risks.

Discussions between Pakistan and the IMF took place in Karachi and Islamabad between February 25 and March 2, followed by virtual engagements. Upon approval, total disbursements under both programmes are expected to reach approximately $4.5 billion.