IMF Executive Board to discuss Pakistan programme on May 9

The board of the International Monetary Fund (IMF) will meet on Friday, May 9 to discuss the first review of ongoing $7 billion bailout programme as well as a new $1.3 billion arrangement under a climate resilience loan programme, according to the IMF website.

Last month, the IMF staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the ongoing 37-month bailout programme.

Pending IMF’s Executive Board approval, Islamabad can unlock the $1.3 billion under a new climate resilience loan programme spanning 28 months.

It will also free $1 billion for Pakistan under the $7 billion bailout programme, which would bring those disbursements to $2 billion.

The development had come after an IMF team, led by Nathan Porter, held discussions during a February 24-March 14, 2025 mission to Karachi and Islamabad, and later virtually.

Climate-related risks continue to pose a significant challenge for Pakistan, creating a need to build resilience including through adaptation measures, according to Porter.

The Pakistani authorities and the IMF team reached staff-level agreement on the Extended Fund Facility in the amount equivalent to SDR 5,320 million (or about USD 7 billion) on July 12, 2024, which was later approved by the IMF’s Executive Board in the last week of September.

Analysts believe the IMF programme is crucial as it gives the government a roadmap for economic reforms while providing a cushion to the country’s foreign exchange reserves.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $367 million on a weekly basis, clocking in at $10.21 billion as of April 18. Total liquid foreign reserves held by the country stood at $15.44 billion. Net foreign reserves held by commercial banks stood at $5.23 billion.