- SBP receives $ 1.023 billion as part of the IMF GA program.
- IMF funds to be shown in the reserves of May 16, explains SBP.
- The disbursement follows the head of May 9 of the Board of Directors.
The State Bank of Pakistan (SBP) announced that it had received the second financing tranche from the International Monetary Fund (IMF) as part of the Fund (EFF) program.
According to an official press release published Wednesday by the central bank on Wednesday, Pakistan received special drawing rights (SDR) 760 million, which is equivalent to $ 1.023 billion, as part of the second episode under the EFF agreement.
The SBP said that the amount received would be reflected in the country’s exchange reserves for the week ending on May 16.
The disbursement follows the approval of the IMF executive council on May 9, which also authorized a new $ 1.4 billion arrangement under the installation of resilience and sustainability (RSF) to support Pakistan climate resilience initiatives.
With this, total disbursements under the efficient reached approximately 2.1 billion dollars (SDR 1.52 billion).
The approval occurred in the middle of geopolitical tension, India urging the IMF to reconsider the case of Pakistan following a deadly attack in Pahalgam, Indian illegally occupied the Jammu and the cashmere (iiojk).
However, the fund has approved Pakistan’s economic program, Prime Minister Shehbaz Sharif welcoming the result and criticizing India’s attempts as “sneaky tactics”.
In a press release, the PMO said that the IMF’s decision was a rejection of false propaganda and validation of the Pakistan development trajectory.
Talk to Geo.tvDr. Khaqan Hassan Najeeb, former adviser to the Ministry of Finance, underlined the importance of disbursement: “Securing the first review of the EFF with the IMF was crucial for Pakistan, as continuously with the fund underlies the macroeconomic stability and ensures the rollover of external loans and the accomplishment of new commitments.”
“A key element of macro-stability has been the slowdown in inflation in the country, which has allowed a substantial reduction in the policy rate, an improvement in the current account and an accumulation in FX reserves,” he added.
He also added: “It is important to recognize that the support of the IMF provided Pakistan a precious breathing space to pursue deeper structural reforms – essential to restore the country’s economic fundamentals.”
“The Fy26 budget is a key opportunity to do essential transformational work on the side of the expenses of the equation and also to advance vertical and horizontal equity in terms of taxation,” he continued.
“In the end, the reorientation of the economy towards sustainable productivity requires a vision which extends far beyond the scope of any arrangement of three years,” he concluded.
The Minister of Finance, Muhammad Aurangzeb, met the director general of the IMF, Kristalina Georgieva, in Washington during spring meetings in 2025, where he reaffirmed the reform commitment of Pakistan and asked for an expansion of the line of exchange of Chinese currency from 30 billion to 40 billion yuan (1.4 billion dollars).
Pakistan and the IMF had entered into an agreement at the level of staff in March under the EFF of $ 7 billion, aimed at ensuring economic stability and facilitating structural change.