The International Monetary Fund (IMF) has released a second tranche of $1.023 billion to Pakistan under its Extended Fund Facility (EFF), the State Bank of Pakistan announced on Wednesday.
The funds, approved last week by the IMF Executive Board, will be reflected in the country’s foreign exchange reserves for the week ending May 16.The IMF mission, which was due to arrive in Islamabad on Tuesday, postponed its visit due to regional security concerns, particularly disruptions to air travel caused by the India-Pakistan conflict.The IMF expressed satisfaction with Pakistan’s economic reform efforts under the EFF programme, citing stabilisation progress despite a difficult global backdrop.Gross foreign exchange reserves rose to $10.3 billion by the end of April, up from $9.4 billion in August 2024, and are projected to reach $13.9 billion by June 2025.
She will participate in the current round of discussions alongside outgoing chief Nathan Porter, although the IMF has not clarified whether both will attend all sessions.
The ongoing talks are focused on Pakistan’s budget for FY2025–26, set to be unveiled on June 2.Sources said the IMF is keen to assess whether the proposed targets are backed by credible and enforceable measures.
Despite earlier setbacks, Pakistan has met key IMF performance benchmarks, including a higher-than-expected federal primary surplus of Rs 3.5 trillion—2.8% of GDP—against a target of Rs 2.7 trillion.
It has also met net revenue and provincial cash surplus targets.
However, the final size of the federal budget remains uncertain due to a review of defence allocations.
Government officials expect the budget to remain under Rs 18 trillion, with the overall deficit pegged at 5.1% of GDP or Rs 6.7 trillion.
