Pakistan set for IMF board review on May 8

May 07, 2026 (MLN): Pakistan moved a step closer to securing fresh inflows from the International Monetary Fund (IMF) after the Fund placed the country’s case on the tentative calendar of its Executive Board meeting scheduled for May 8, 2026.

According to the IMF Executive Board calendar updated on May 5, the Board is expected to discuss Pakistan’s Third Review under the Extended Fund Facility (EFF) and the Second Review of the Resilience and Sustainability Facility (RSF).

The development signals growing momentum toward the formal approval of approximately $1.21 billion in fresh funding for Pakistan, including around $1bn (SDR 760 million) under the EFF and nearly $210m (SDR 154 million) under the RSF.

Once approved, total disbursements under both facilities would rise to nearly $4.5bn, providing a significant boost to Pakistan’s external financing position and foreign exchange reserves.

The upcoming board review follows the staff-level agreement reached between Pakistan and the IMF in March after discussions held in Karachi and Islamabad from February 25 to March 2, followed by virtual negotiations.

At the time, IMF mission chief Iva Petrova had confirmed that both sides had reached consensus on the third review of the 37-month EFF and the second review of the 28-month RSF.

The IMF had noted that Pakistan’s reform programme remains broadly on track, with ongoing policies helping strengthen economic stability, rebuild market confidence and support the recovery momentum witnessed in FY25.

Economic indicators have shown signs of improvement in recent months, with inflation easing sharply from previous highs, the current account remaining relatively contained and external buffers gradually strengthening.

The anticipated approval also comes at a time when Pakistan is navigating heightened global uncertainty stemming from the ongoing Middle East conflict.

In its April 2026 Regional Economic Outlook Update, the IMF warned that the war has disrupted energy markets, trade routes around the Strait of Hormuz and global supply chains, creating downside risks for economies across the Middle East, North Africa, Afghanistan and Pakistan (MENAP) region.

Speaking during an outreach session at the Sustainable Development Policy Institute (SDPI), IMF Resident Representative Dr. Mahir Binici cautioned that Pakistan remains vulnerable to rising energy and food import costs, tighter financial conditions and possible pressure on remittance inflows.

Despite these risks, the IMF acknowledged that Pakistan’s EFF programme performance remains broadly satisfactory, while reiterating the importance of prudent fiscal management, tight and data-dependent monetary policy and continued structural reforms.

The Fund also emphasized the need to rebuild fiscal and external buffers, avoid untargeted subsidies and continue strengthening social protection mechanisms for vulnerable segments of society.

Pakistan’s authorities, meanwhile, have reaffirmed their commitment to fiscal discipline, energy sector reforms, climate resilience measures and sustainable debt management as part of the reform agenda tied to the IMF programme.

Market participants are now closely watching the May 8 Executive Board meeting, as approval could further strengthen investor confidence, support the rupee and improve the country’s external financing outlook amid ongoing global volatility.

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