ISLAMABAD: The International Monetary Fund (IMF) has approved a new tranche of approximately $1.3 billion for Pakistan, indicating another important step in the country’s ongoing engagement with the global lender.
The decision was finalized during a meeting of the IMF Executive Board held in Washington.
In this regard, Pakistan’s Ministry of Finance confirmed that the disbursement falls under the IMF’s $7 billion Extended Fund Facility (EFF) program, from which Pakistan will now receive more than $1 billion as part of the third tranche.
The approval of the $1.3 billion tranche, an additional release of over $200 million considered the first tranche under a supplementary facility will also be made available.
With these latest disbursements, Pakistan’s total receipts under the two IMF programs are expected to reach $3.3 billion.
So far, Pakistan has already received two installments under the current EFF arrangement. The first tranche of $1 billion was released in September 2024, along with the launch of the 37-month program, while the second tranche, also amounting to $1 billion, was released in May 2025.
Furthermore, the IMF Executive Board also endorsed the completion of Pakistan’s second economic review. The Board noted improved adherence to the program and described the government’s implementation of required reforms as “strengthened.”
It further focused on the importance of continued commitment to economic adjustments aimed at ensuring macroeconomic stability.
Moreover, the government officials, in their briefings to the IMF, confirmed Pakistan’s intention to maintain the pace of structural and fiscal reforms.
These measures ranging from energy sector adjustments to improved revenue mobilization are seen as critical to stabilizing the country’s financial position and restoring investor confidence.
The latest approval is expected to boost Pakistan’s foreign exchange reserves and support the country’s broader economic stabilization efforts. Analysts note that continued progress under the IMF program remains essential for meeting external financing needs and managing fiscal pressures.
The government is expected to outline additional reform measures in the coming weeks as part of its ongoing engagement with the IMF and other international partners.
