Islamabad, Wednesday — Pakistan’s economic stability received a major boost as the country secured the second tranche of \$1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), the State Bank of Pakistan (SBP) confirmed on X.
The disbursement, made through special drawing rights (SDR), will be reflected in foreign exchange reserves for the week ending May 16. This brings total disbursements under the EFF to approximately \$2.1 billion.
Last week, the IMF Executive Board approved the immediate release of funds after completing the first review of Pakistan’s reform program. Additionally, the Board approved a \$1.4 billion arrangement under the Resilience and Sustainability Facility (RSF), designed to strengthen climate and disaster preparedness.
The IMF praised Pakistan’s fiscal performance. It noted a 2% primary surplus in GDP during the first half of FY25. Furthermore, it acknowledged the government’s success in stabilizing the macroeconomic environment.
Inflation dropped sharply to 0.3% in April. As a result, the SBP cut interest rates significantly. Meanwhile, foreign exchange reserves rose to \$10.3 billion by the end of April. Projections indicate an increase to \$13.9 billion by June.
The IMF expressed confidence in Pakistan’s ongoing reforms. It also highlighted progress in building long-term resilience and supporting sustainable development.
Prime Minister Shehbaz Sharif welcomed the IMF’s decision. He said global institutions had rejected India’s “false propaganda” and efforts to undermine Pakistan’s recovery. Moreover, he emphasized the country’s forward momentum and commitment to reform.
Therefore, this disbursement marks a significant step in Pakistan’s journey toward economic stability.
