Pakistan’s foreign reserves have received a significant boost following the arrival of the second IMF tranche under the Extended Fund Facility (EFF). The State Bank of Pakistan (SBP) confirmed on Tuesday that it has received SDR 760 million—equivalent to approximately $1.023 billion—from the International Monetary Fund (IMF).
Disbursement After Successful Review
The disbursement came after the IMF Executive Board completed the first review of Pakistan’s performance under the EFF program. The review meeting was held on May 9, 2025. Following the review, the IMF approved the immediate release of the second tranche to support Pakistan’s economic reform agenda.
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Reserves to Reflect Increase by May 16
According to SBP, the funds were received on May 13, 2025. The amount will be officially reflected in the central bank’s foreign exchange reserves for the week ending May 16, 2025.
Extended Fund Facility Background
For Pakistan, the facility includes commitments to fiscal discipline, structural reforms, and measures to improve governance and transparency in public financial management.
Positive Economic Signal
This tranche is the second in the series of planned disbursements under the multiyear EFF arrangement. It signals the IMF’s continued confidence in Pakistan’s reform path and macroeconomic management. It also reassures international creditors and investors of Pakistan’s progress on agreed performance benchmarks.
Future Tranches and Expectations
With the successful completion of the first review, Pakistan can now look forward to upcoming evaluations and tranches. Continued compliance with IMF conditions will remain crucial for the sustainability of the program and long-term economic stability.
The inflow comes at a time when Pakistan is also pursuing broader economic diplomacy and financial support from multilateral partners to ease external pressures and stabilize its economy.
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