IMF places Pakistan on board agenda for $1.21bn disbursement under EFF and RSF reviews

Pakistan’s financing programme with the International Monetary Fund (IMF) moved closer to the next payout stage after the Fund placed the country on the agenda of its Executive Board meeting scheduled for May 08, 2026, according to its updated website.

The Board is expected to consider approval of a combined $1.21 billion disbursement under Pakistan’s ongoing arrangements, covering the third review of the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).

If approved, the release will include approximately $1.0 billion (SDR 760 million) under the EFF and about $210 million (SDR 154 million) under the RSF, taking total disbursements under both programmes to around $4.5 billion.

The move follows a staff-level agreement reached last month between IMF mission chief Iva Petrova and Pakistani authorities on the combined programme reviews.

At the time, the IMF noted that ongoing policy implementation under the EFF had continued to support economic stabilization and helped rebuild market confidence. It also observed that, following recovery in fiscal year 2025, economic activity had strengthened further in the early months of the current fiscal year.

Macroeconomic indicators, including inflation and the current account balance, were described as contained, while external buffers showed continued improvement. However, the Fund flagged emerging risks from geopolitical tensions in the Middle East, warning that volatile energy prices and tighter global financial conditions could weigh on inflation, growth, and the external account.

Earlier, IMF Managing Director Kristalina Georgieva, during a meeting with Finance Minister Muhammad Aurangzeb on the sidelines of the IMF–World Bank Spring Meetings 2026, acknowledged Pakistan’s reform progress.

She said strong implementation of reforms had helped maintain macroeconomic stability and strengthen investor confidence, while stressing that deeper structural reforms would remain critical for sustaining growth and improving welfare outcomes.