Pakistan Receives $1.02 Billion Second Tranche from IMF Under Extended Fund Facility
Pakistan receives $1.02 billion from the IMF under the Extended Fund Facility, strengthening forex reserves. Learn how this impacts Pakistan’s economy, reforms, and global credibility.
ISLAMABAD, May 14 — Pakistan has received the second tranche of special drawing rights (SDRs) worth approximately $1.02 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), the State Bank of Pakistan (SBP) confirmed on Wednesday via a post on X (formerly Twitter). This inflow comes as part of the IMF’s broader commitment to support Pakistan’s economic reform agenda aimed at stabilizing the economy, enhancing fiscal discipline, and ensuring sustainable growth.
The $1.023 billion equivalent in SDRs (roughly 760 million SDRs) will be reflected in the country’s official foreign exchange reserves for the week ending May 16, the central bank noted. This financial boost comes at a critical juncture for Pakistan as the country continues to face challenges including inflationary pressure, external debt repayments, and a depreciating local currency.
The disbursement is part of the $3 billion standby arrangement approved by the IMF last year to help Pakistan avert a balance of payments crisis. The program is designed to support macroeconomic stability, restore investor confidence, and implement key structural reforms.
Economic analysts believe this tranche will temporarily ease pressure on the country’s foreign reserves and provide some breathing room for the government ahead of upcoming fiscal and debt obligations. However, experts also caution that sustainable economic recovery will depend on continued fiscal discipline, broad-based reforms, and consistent policy implementation.
The IMF’s Extended Fund Facility program spans over several phases, with each disbursement conditional upon the successful completion of quarterly reviews. The latest release signals IMF’s satisfaction with Pakistan’s recent reform efforts, including measures taken to improve tax collection, energy sector governance, and currency market liberalization.
While this installment is a positive sign, Pakistan remains under close observation from global financial institutions, and further progress will be crucial to secure continued support.
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