Islamabad, April 29, 2025 – The International Monetary Fund (IMF) Executive Board is set to convene on Friday, May 9, to assess two key financial arrangements with Pakistan: the first review of the ongoing $7 billion bailout programme and approval of a new $1.3 billion climate resilience loan, according to the official IMF calendar.
The meeting comes after a staff-level agreement was reached in March 2025 between Pakistani authorities and the IMF on both the Extended Fund Facility (EFF) and the proposed Resilience and Sustainability Facility (RSF), which aims to address climate-related economic vulnerabilities over a 28-month period.
Pending the IMF Executive Board’s approval, Pakistan is expected to receive:
- $1 billion under the $7 billion EFF, bringing total disbursements under that programme to $2 billion, and
- $1.3 billion under the RSF, a new climate adaptation initiative.
The IMF’s review and potential disbursements come at a crucial time for Pakistan, as the country grapples with high external financing needs, a fragile economic recovery, and growing climate challenges.
Nathan Porter, who led the IMF mission to Karachi and Islamabad from February 24 to March 14, stressed the urgency of climate resilience in Pakistan, noting that climate-related risks remain a significant threat. The new arrangement under the RSF is designed to support climate-related reforms, adaptation projects, and capacity building.
The initial staff-level agreement for the $7 billion EFF was signed on July 12, 2024, with the IMF Executive Board granting final approval in late September 2024. The programme lays out a roadmap for fiscal consolidation, energy sector reforms, and strengthening Pakistan’s monetary and financial framework.
Meanwhile, Pakistan’s foreign exchange reserves remain under pressure. According to the State Bank of Pakistan (SBP), reserves dropped by $367 million in the week ending April 18, bringing SBP’s reserves to $10.21 billion. Total liquid reserves now stand at $15.44 billion, including $5.23 billion held by commercial banks.
Analysts view the IMF’s backing as critical for economic stability, stating that it provides Pakistan with both policy credibility and financial buffer amid fluctuating global markets and domestic fiscal strains.
