SBP receives $1.023 billion loan tranche from IMF under EFF
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The amount will be reflected in SBP’s foreign exchange reserves for the week ending on 16th May
KARACHI (Dunya News) – The State Bank of Pakistan (SBP) has received the second tranche of $1.023 million from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) programme.
The amount will be reflected in SBP’s foreign exchange reserves for the week ending on 16th May 2025, the bank said in a statement.
Last week, the IMF’s Executive Board formally approved a $1 billion disbursement for Pakistan under the EFF, marking a significant step in the country’s ongoing economic stabilisation efforts.
The tranche was greenlit following Pakistan’s successful completion of key performance benchmarks. The EFF programme, which is designed to support countries facing balance-of-payment difficulties, spans a 37-month period.
Additionally, Pakistan is also a participant in the Resilience and Sustainability Facility (RSF), which is aimed at enhancing climate resilience and spans 28 months. However, the current disbursement only pertains to the EFF.
This immediate release of funds is expected to provide crucial support to Pakistan's foreign exchange reserves, ease fiscal pressure, and help maintain economic momentum amid ongoing global financial uncertainty.
Also Read: IMF rejects India's objections on Pakistan's support programme
The IMF’s decision came after Pakistan fulfilled major structural benchmarks, including improvements in the tax-to-GDP ratio, maintaining a primary fiscal surplus, and achieving provincial fiscal targets.
Economic analysts have lauded the development, noting that this financial injection is vital for Pakistan’s economic stability and investor confidence. They emphasized that it will not only ease short-term fiscal challenges but also bolster Pakistan’s credibility in the eyes of international lenders.
Earlier, reports suggested that India had attempted to obstruct the approval process. However, the move failed, and in response, India allegedly withdrew its representative from the IMF Executive Board.
Pakistan-IMF Budget Talks
The budget talks between the global lender and the Pakistan government are set to start today.
The virtual talks between Pakistan and the IMF with regard to budget preparation will now take place online as the latter’s delegation could not reach the country as per its schedule on Wednesday (yesterday), Dunya News has learnt.
According to sources, budget talks with the IMF will now be held online this week, whereas the arrival of the delegation of funding agency is expected next week.
Sources said the negotiations on budget preparation were scheduled to be held on Wednesday (yesterday), adding now virtual negotiations will be held this week and the delegation for talks will arrive next week. Budget proposals will be shared with IMF during the online negotiations, the sources said.
The Pakistan’s economic team has completed preparations for giving briefing to the IMF, and its delegation will review budget preparation during online meetings. Ministry of Finance and FBR officials will hold virtual negotiations.
The talks, which will continue till May 16, will centre around the upcoming budget.
Both sides will discuss income and expenditure, with the Pakistan government briefing the lender about the tax and non-tax revenue.
According to reports, special sessions will be held to convince the IMF to lessen the tax burden on the already weighed down salaried class.
