Second IMF Loan Tranche Arrives in Pakistan’s Reserves

ISLAMABAD (RNN TV) — Pakistan has received the second tranche of its ongoing loan program from the International Monetary Fund (IMF), with $1 billion transferred to the State Bank of Pakistan (SBP).

The latest disbursement follows the IMF Executive Board’s approval on May 9 and will be reflected in the central bank’s foreign exchange reserves by May 16. The funding marks a critical milestone in Pakistan’s economic stabilization efforts, aimed at strengthening its fiscal and external buffers.

In an official statement, the IMF confirmed, “The Executive Board completed the first review under the Extended Fund Facility (EFF), allowing the authorities to draw the equivalent of approximately $1 billion (SDR 760 million).”

Last month, Pakistan and the IMF reached a staff-level agreement for the first review of the 37-month, $7 billion EFF. The agreement also included a new 28-month, $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF), designed to enhance the country’s resilience to climate-related and natural disaster risks.

The IMF stated, “The staff-level agreement is subject to Executive Board approval. Upon approval, Pakistan will have access to about $1.0 billion under the EFF, bringing total disbursements under the program to approximately $2.0 billion.”

Additionally, the IMF Executive Board has endorsed Pakistan’s proposal for the RSF program, which will provide around $1.4 billion in support of sustainable economic reforms and climate resilience initiatives.

Source: Web Desk