ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is set to convene on May 9 to evaluate Pakistan’s progress under the first review of the Extended Fund Facility (EFF) program, and consider a request to revise performance benchmarks along with a proposal for a new arrangement under the Resilience and Sustainability Facility (RSF).
This review pertains to the $7 billion EFF agreement and includes a potential approval of a $1.3 billion climate resilience loan through the RSF, spanning a 28-month period. If approved, Pakistan would gain access to approximately $1 billion (equivalent to SDR 760 million) under the EFF, increasing total disbursements under the program to roughly $2 billion.
The new $1.3 billion RSF arrangement aims to support the country’s efforts toward climate adaptation and sustainability.
A delegation from the IMF, led by Nathan Porter, conducted a mission in Karachi and Islamabad from February 24 to March 14, 2025, followed by virtual discussions. These meetings were part of the first review of Pakistan’s economic reform plan under the EFF and negotiations for the RSF.
On March 25, 2025, the IMF confirmed that its team and Pakistani officials had reached a staff-level agreement on a comprehensive reform plan, backed by both federal and provincial governments, which could be supported through a 37-month EFF worth $7 billion.
According to the IMF, the program is intended to build on the macroeconomic stability achieved in the past year, focusing on fiscal consolidation, lowering inflation, rebuilding foreign reserves, and eliminating market distortions to stimulate private sector-driven growth.
