Pakistan to receive $1.32 bn IMF tranche under ongoing lending programmes

The International Monetary Fund (IMF) has completed reviews of Pakistan’s ongoing lending arrangements, paving the way for fresh funding of about $1.32 billion for Islamabad.

Following a meeting of its executive board in Washington DC on Friday, the IMF said the decision would enable Pakistan to immediately access about $1.1 billion under the Extended Fund Facility (EFF) and around $220 million under the Resilience and Sustainability Facility (RSF).

With the latest disbursement, total funding released to Pakistan under the two programmes will rise to nearly $4.8 billion.

Pakistan’s 37-month EFF arrangement was approved in September 2024 with the aim of supporting economic stability, strengthening resilience and enabling sustainable growth, the IMF said.

The multilateral lender had also approved a 28-month RSF programme in May 2025 to support climate resilience initiatives and broader economic reforms.

Multi-year IMF lending arrangements are generally tied to economic reform and performance benchmarks, with periodic reviews conducted before the release of each tranche.

“The authorities’ strong implementation, despite the Middle East war, has maintained economic stability and improved financing and external conditions,” the IMF said in a statement.

However, the lender added that Pakistan would need to continue pursuing strong economic policies and structural reforms to improve resilience and ensure sustainable long-term growth amid external shocks linked to the conflict situation.

Last year, India had reportedly raised concerns over repeated IMF assistance to Pakistan, questioning the effectiveness of successive bailout packages and flagging the “possibility of misuse of funds for state-sponsored cross-border terrorism”.

India had urged multilateral financial institutions to ensure that financial assistance provided to Pakistan was utilised strictly for its intended purposes.