IMF approves $2.4bn for Pakistan, immediate disbursement of $1bn

May 09, 2025 (MLN): The International Monetary Fund (IMF) Executive Board on Friday approved a total of $2.3 billion in funding for Pakistan, comprising the disbursement of a $1 billion tranche under its ongoing Extended Fund Facility (EFF) and the launch of a new $1.4bn Resilience and Sustainability Facility (RSF).

The latest approval brings total disbursements under the $3bn EFF program to $2.1bn.

The $1bn tranche will be disbursed immediately, while the RSF financing will be rolled out over the next 28 months to support long-term sustainability and climate resilience efforts.

Pakistan’s economic team, under the leadership of Finance Minister Muhammad Aurangzeb played key roles in steering the talks after earlier hurdles threatened to delay progress.

The IMF board gave the green light despite a reported attempt by India to oppose the disbursement, given India holds just 2.7% of the IMF's voting power.

Prime Minister Shehbaz Sharif welcomed the decision, calling it a "vote of confidence" in Pakistan’s reform agenda. "The government remains focused on structural reforms, including tax mobilization, energy sector overhaul, and boosting private sector participation," his office said in a statement.

The approval also indicated renewed confidence in the government’s ability to adhere to fiscal discipline and push forward with reform commitments.

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