May 09, 2025 (MLN): Pakistan has submitted a request for a loan of over $1 billion under the IMF’s Resilience and Sustainability Facility, with an important meeting scheduled for May 9 to assess whether the country meets the necessary criteria to unlock the next tranche of funding.
The upcoming IMF meeting will focus on the first review of Pakistan's $7bn Extended Fund Facility (EFF) program, alongside a request for adjustments to performance criteria.
Additionally, the approval of a new $1.3bn loan under the Resilience and Sustainability Facility (RSF) will be discussed.
If approved, Pakistan will gain access to approximately $1bn (SDR 760 million) under the EFF, bringing the total disbursements under the program to about $2bn.
Additionally, Pakistan will unlock the $1.3bn available through the RSF, aimed at supporting the country's climate resilience efforts over the next 28 months.
IMF discussions, led by Nathan Porter, were held in Karachi and Islamabad from February 24 to March 14, 2025, followed by virtual meetings to assess Pakistan's economic performance under both the EFF and RSF.
A staff-level agreement reached in March 2025 outlines a comprehensive economic program that has been endorsed by both federal and provincial governments.
The IMF has emphasized that the program builds on the macroeconomic stability Pakistan has achieved in the past year, with a focus on strengthening public finances, reducing inflation, rebuilding external reserves, and addressing economic distortions to promote private-sector-driven growth.
In the lead-up to the IMF meeting, Pakistan confirmed experiencing "heavy losses" following India’s Operation Sindoor and a concurrent stock market crash.
The country has also approached other international partners for additional financial support.
Amid public backlash, a post appeared on Pakistan’s official X account, referencing loan requests due to these "losses." However, Pakistan’s Ministry of Economic Affairs later denied authoring the post, claiming the account had been "hacked" and that efforts are underway to deactivate the X account.
Copyright Mettis Link News
Posted on: 2025-05-09T10:58:00+05:00
