The International Monetary Fund (IMF) Board will meet on Friday, May 9, to discuss the first review of Pakistan’s ongoing $7 billion bailout program under the Extended Fund Facility (EFF) and consider a new $1.3 billion climate resilience loan.Â
This follows an agreement reached last month between the IMF staff and Pakistani authorities on both the bailout program and the new climate-focused funding.
Pending approval by the IMF’s Executive Board, Pakistan stands to unlock $1.3 billion under the new climate resilience loan, which spans a period of 28 months. This will also release an additional $1 billion from the ongoing $7 billion bailout, bringing the total disbursements from the package to $2 billion.
The deal follows extensive discussions between Pakistani officials and an IMF team led by Nathan Porter, who visited Karachi and Islamabad from February 24 to March 14, 2025, and later continued talks virtually. Climate-related risks remain a major concern for Pakistan, and the IMF’s emphasis on resilience-building and adaptation measures is crucial for the country’s long-term stability.
The IMF’s extended fund facility, worth around $7 billion, was first agreed upon in July 2024, and the IMF’s Executive Board approved the deal in late September 2024. This program is seen as essential for providing Pakistan with a roadmap for economic reforms and helping to stabilize its foreign exchange reserves.
