Pakistan's foreign exchange reserves received a significant boost with the arrival of a $1.023 billion tranche from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) program. The State Bank of Pakistan (SBP) confirmed the receipt on May 14, 2025, noting it would be reflected in the reserves for the week ending May 16, 2025.
The IMF's Executive Board approved the $1 billion disbursement following a successful review of Pakistan's performance under the EFF. This program supports countries facing balance-of-payment challenges. The IMF also approved a $1.4 billion arrangement for Pakistan under the Resilience and Sustainability Facility (RSF) to bolster climate resilience.
The IMF acknowledged Pakistan's progress in restoring macroeconomic stability, including a significant reduction in inflation. Gross reserves reached $10.3 billion at the end of April 2025 and are projected to increase to $13.9 billion by the end of June 2025. The SBP anticipates the inflow will strengthen Pakistan's external buffers and support its reform agenda, fostering investor confidence.
The Executive Board's decision on May 9, 2025, allowed for the immediate disbursement of approximately $1 billion, bringing total disbursements under the EFF arrangement to about $2.1 billion.
The State Bank of Pakistan has received the second tranche amounting to $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme.
According to the central bank, the inflow will be recorded in the country's foreign exchange reserves for the week ending May 16.
The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash.
“SBP has received the second tranche of SDR 760 million ($ 1,023 million) from the IMF under the EFF program,” the central bank said on X.
“The amount will be reflected in SBP's foreign exchange reserves for the week ending on 16th May 2025.”
“Pakistan's policy efforts under the program have already delivered significant progress in stabilizing the economy and rebuilding confidence, amidst a challenging global environment,” the IMF said in a statement on Friday, when it approved the latest tranche.