Pakistan Likely to Receive Next IMF Loan Tranche in Early May

ISLAMABAD: Pakistan is expected to receive the next tranche of the International Monetary Fund (IMF) loan under the Extended Fund Facility (EFF) in the first ten days of May. The IMF Executive Board has scheduled a meeting on May 9, with Pakistan included on the agenda.
According to details, the Board will decide on the disbursement of $1.1 billion during the upcoming meeting. In total, Pakistan is set to receive $2.3 billion, including $1.3 billion under the new Resilience and Sustainability Facility (RSF) agreement, which spans 28 months.
Following the IMF announcement, the Pakistan Stock Exchange reacted positively. After an initial drop of 500 points, the market rebounded, gaining 135 points and returning to the positive zone.
A staff-level agreement between Pakistan and the IMF was finalized in March after an economic review. The IMF has issued a formal statement confirming that the current program implementation remains strong. Pakistani authorities have reaffirmed their commitment to reducing public debt sustainably.
The IMF noted that the government is dedicated to implementing reform measures, enhancing disaster preparedness, improving budget planning and investment, and ensuring efficient water usage to address climate-related risks. The program also supports aligning energy sector reforms with environmental goals.
While gradual improvement in Pakistan’s economic activity is anticipated, the IMF cautioned that risks to the economy persist, including inflationary pressures, geopolitical uncertainties, volatile commodity prices, and global financial tightening. The report highlighted that rising trade restrictions and climate risks could pose further challenges to economic stability.
The IMF emphasized the importance of maintaining the progress made over the past 18 months and urged fiscal discipline in the upcoming 2025–26 federal budget. It also advised the government to control current expenditures within the approved budget.
The Pakistani government has assured the IMF of expanding the unconditional cash assistance under the Benazir Income Support Programme (BISP) and reducing energy subsidies to create fiscal space.