The International Monetary Fund approved approximately $1.32 billion in fresh disbursements for Pakistan on May 9, 2026, as part of ongoing support programmes. The funding includes $1.1 billion from an Extended Fund Facility and $220 million from a climate-focused Resilience and Sustainability Facility. The IMF praised Pakistan’s policy implementation but stressed the continued need for fiscal discipline and structural reforms to ensure long-term economic stability.
The International Monetary Fund has approved new loan disbursements allowing Pakistan to receive about $1.32 billion. This decision followed the IMF Executive Board’s completion of reviews linked to the country’s Extended Fund Facility and Resilience and Sustainability Facility.
The approval provides immediate access to nearly $1.1 billion under the Extended Fund Facility and about $220 million through the climate-focused facility. Total disbursements under both programmes now stand at around $4.8 billion. The IMF stated that Pakistan IMF funding helped maintain economic stability despite external pressures.
The lender highlighted that the country’s relationship with the IMF was contingent upon continued macroeconomic discipline and structural reforms. It stressed the need for fiscal restraint, improved tax administration, and reforms in public sector enterprises.
The IMF praised the State Bank of Pakistan for maintaining a tight monetary policy, including a 100 basis point interest rate increase to 11.5 percent in April. It noted that inflation increased due to higher international commodity prices, which pushed up local energy costs. The country’s gross reserves were estimated at $16 billion as of December, up from $14.5 billion in June 2025.
The funding programmes include the 37-month Extended Fund Facility approved in September 2024 and the Resilience and Sustainability Facility approved in May 2025. The IMF said strong policy implementation improved financing conditions and strengthened Pakistan’s external position.
