Pakistan receives second tranche of $1bn from IMF

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Pakistan has received the second tranche of special drawing rights (SDR) worth $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme, the central bank said on Wednesday.

The amount will be reflected in its foreign exchange reserves for the week ending on May 16, the State Bank of Pakistan (SBP) said in a post on X. It would raise the reserves to $11.355bn.

Last week, the IMF had approved the immediate disbursement of about $1bn to Pakistan under the ongoing EFF and allowed an additional arrangement for the $1.4bn Resilience and Sus­tainability Facility (RSF).

In a statement issued last Friday, the IMF had said its Executive Board completed the first review of Pakistan’s economic reform programme supported by the EFF arrangement.

“This decision allows for an immediate disbursement of around $1bn (SDR 760 million), bringing total disbursements under the arrangement to about $2.1bn (SDR 1.52bn). In addition, the IMF Executive Board approved the authorities’ request for an arrangement under the RSF, with access of about $1.4bn (SDR 1bn),” it said.

It noted that Pakistan’s policy efforts under the EFF had already delivered “significant progress” in stabilising the economy and rebuilding confidence, amidst a challenging global environment.

“Fiscal performance has been strong, with a primary surplus of two per cent of gross domestic product achieved in the first half of FY25, keeping Pakistan on track to meet the end-FY25 target of 2.1pc of GDP.

“Inflation fell to a historic low of 0.3pc in April, and progress on disinflation and steadier domestic and external conditions, have allowed the State Bank of Pakistan to cut the policy rate by a total of 1100 bps since June 2025. Gross reserves stood at $10.3bn at end-April, up from $9.4bn in August 2024, and are projected to reach $13.9bn by end-June 2025 and continue to be rebuilt over the medium term.”

Meanwhile, it said the RSF would support the authorities’ efforts to reduce vulnerability to natural disasters and build economic and climate resilience.

A statement from the Prime Minister’s Office (PMO) had said PM Shehbaz Sharif expressed satisfaction over the approval and “the failure of India’s high-handed tactics” against Pakistan.

“The country’s economic situation has improved and the country is moving towards development. India is plotting a conspiracy to divert attention from our country’s development through unilateral aggression.

“International institutions have responsibly rejected India’s false propaganda. Indian attempts to sabotage the IMF programme have failed,” it quoted the prime minister as saying.

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