IMF disburses USD 1.023 billion tranche under Extended Fund Facility programme for Pakistan

The disbursement of the second tranche comes on a day when the International Monetary Fund (IMF) is holding virtual discussions on Pakistan's upcoming budget, as the visit of its mission to Islamabad was delayed due to security concerns in the region

Karachi/Islamabad: The International Monetary Fund has disbursed a second tranche of USD 1.023 billion under the Extended Fund Facility programme for Pakistan, the central bank said on Wednesday.

The disbursement of the second tranche comes on a day when the International Monetary Fund (IMF) is holding virtual discussions on Pakistan’s upcoming budget, as the visit of its mission to Islamabad was delayed due to security concerns in the region.

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The federal government is planning to unveil the budget for fiscal 2025-26 on June 2. The IMF talks will continue until May 16. The Central bank said the second tranche amount would be reflected in its foreign exchange reserves for the week ending May 16.

The amount was approved last week by the IMF board under the ongoing Extended Fund Facility (EFF) and allowed an additional arrangement for the USD 1.4 billion Resilience and Sustainability Facility (RSF).

The decision to release the funds came after the IMF expressed satisfaction on the first review of Pakistan’s economic reform programme supported by the EFF Arrangement, the bank said.
The IMF 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 2.1 per cent of GDP. Pakistan’s gross reserves stood at USD 10.3 billion at end-April, up from USD 9.4 billion in August 2024, and are projected to reach USD 13.9 billion by end-June 2025 and continue to be rebuilt over the medium term, it was pointed out.

Meanwhile, the IMF talks that started virtually on Wednesday will continue until May 16. The global lender has appointed a new mission chief to Pakistan and the mission is now expected to travel to Islamabad over the weekend, subject to the security situation, government sources told The Express Tribune on Tuesday.

The IMF mission delayed its scheduled arrival here on Tuesday due to uncertainty caused by the India-Pakistan conflict that had affected air travel across the region. “Virtual discussions are expected to be held from today. For the second and final leg of the talks, the IMF team is expected to arrive in Islamabad on Saturday and stay until May 23,” the source said.