Islamabad: The International Monetary Fund (IMF) Executive Board is scheduled to meet on Friday, May 9, to review Pakistan’s progress under its ongoing $7 billion Extended Fund Facility (EFF) and to decide on a new $1.3 billion climate resilience loan arrangement.
The IMF’s official calendar confirms the agenda includes both the first review of the 37-month EFF programme and the potential approval of the new 28-month climate resilience initiative. If approved, Islamabad would receive $1 billion as part of the EFF’s second tranche and an additional $1.3 billion under the new arrangement.
This development follows a staff-level agreement reached in March between the IMF mission, led by Nathan Porter, and Pakistani authorities during a visit to Karachi and Islamabad from February 24 to March 14. The mission was later concluded through virtual discussions.
The climate resilience programme is intended to help Pakistan strengthen its ability to manage climate-related risks, which the IMF notes remain a significant challenge. The initiative aims to support adaptation efforts and enhance long-term economic resilience.
The original EFF deal, approved by the IMF Board in September 2024, is seen by analysts as a key pillar of Pakistan’s broader economic reform strategy. It offers critical financial support and policy direction amid ongoing challenges, including a high external financing need and a fragile macroeconomic outlook.
Pakistan’s foreign exchange reserves stood at $10.21 billion with the State Bank of Pakistan as of April 18, following a weekly decline of $367 million. Total national reserves, including those held by commercial banks, were reported at $15.44 billion.
Approval of both the disbursement and new facility is expected to reinforce investor confidence and provide a buffer for Pakistan’s balance of payments, as the country continues to navigate its path to economic stability.
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