IMF says decision includes immediate disbursements of about $1.1 billion under the Extended Fund Facility (EFF) and nearly $220 million under the Resilience and Sustainability Facility RSF
WASHINGTON/ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-May 9th, 2026) The International Monetary Fund (IMF) has approved the release of $1.32 billion for Pakistan after its Executive board completed key programme reviews under the country’s ongoing economic reform arrangements.
The IMF said that the decision includes immediate disbursements of about $1.1 billion under the Extended Fund Facility (EFF) and nearly $220 million under the Resilience and Sustainability Facility (RSF). The approval provides Pakistan with fresh financial support as it works to strengthen foreign exchange reserves, contain inflation, and meet reform targets related to revenue generation and state-owned enterprise privatisation.
The development was also confirmed by Finance Minister Muhammad Aurangzeb, while Deputy Prime Minister and Foreign Minister Ishaq Dar described the approval as a reflection of international confidence in Pakistan’s economic measures.
The IMF said its Executive Board had completed the third review of Pakistan’s EFF-supported programme and the second review under the RSF arrangement. With the latest approval, total disbursements under both programmes have reached approximately $4.8 billion.
Pakistan’s 37-month EFF programme, approved in September 2024, focuses on restoring macroeconomic stability, rebuilding reserves, expanding the tax base, improving public financial management, and reforming state-owned enterprises.
It also includes measures to strengthen social protection, healthcare, education spending, and energy sector reforms.
The Fund noted that Pakistan has made progress in stabilising its economy, with inflation trends, fiscal performance, and external accounts showing relative improvement despite global uncertainties. Foreign exchange reserves have also shown an upward trend in recent months.
The RSF programme, approved in May 2025, supports Pakistan’s efforts to improve climate resilience, disaster preparedness, water management, and climate-related financial planning.
In its assessment, the IMF emphasised the need for continued fiscal discipline, revenue expansion, and improved spending efficiency. It also stressed the importance of maintaining tight monetary policy to control inflation and allowing exchange rate flexibility to absorb external shocks.
The Fund further highlighted the need for structural reforms, including improvements in governance, privatisation of state-owned enterprises, and reducing regulatory barriers to strengthen private sector investment.
Energy sector reforms were also underscored, with the IMF urging Pakistan to keep fuel, electricity, and gas prices aligned with costs while protecting vulnerable groups through targeted support mechanisms.
