KARACHI: Pakistan has received inflows worth USD 1.3 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and under the Resilience and Sustainability Facility (RSF).
Recently, the IMF Executive Board has completed third review under the EFF loan program and accordingly approved the disbursement of SDR 760 million for Pakistan under the EFF programme in its meeting held on May 8, 2026. In addition, the Board also approved the second tranche of SDR 154 million under the RSF.
Following the approval, the IMF has released fresh approved funds for Pakistan yesterday. The SBP confirmed on Wednesday that it had received a total of SDR 914 million (equivalent to about USD1.3 billion) from the IMF on May 12, 2026 under the EFF and RSF programs.
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However, the amount will be reflected in the SBP’s foreign exchange reserves for the week ending May 15, 2026.
The latest IMF inflow comes at a crucial time as Pakistan seeks to strengthen its depleting foreign exchange reserves. During April 2026 alone, the country repaid around USD 5 billion in external debt, creating significant pressure on the external account, as these outflows represented nearly one-third of the SBP’s reserves.
A major portion of the repayments included the successful redemption of a USD1.8 billion Eurobond, along with approximately USD3.5 billion paid to the UAE. Despite the heavy repayment burden, timely financial inflows, including around USD3 billion from Saudi Arabia, helped Pakistan smoothly meet its scheduled external debt servicing obligations.
Analysts said that the IMF inflows is expected to provide much-needed support to the country’s external account position and strengthen the foreign exchange reserves, besides enhance the investor confidence amid ongoing economic stabilization efforts.
The EFF program, approve by the IMF in September 2024, is aimed at supporting Pakistan’s macroeconomic reforms, fiscal consolidation, and structural adjustments to ensure long-term economic stability. Similarly, the RSF programme, approved in May 2025, is focused on helping vulnerable economies address climate-related risks and improve resilience against environmental and economic shocks.
The increase in external financing indicates an improvement in the country’s risk perception amid the ongoing IMF programme. During the period under review, Pakistan’s sovereign credit rating also improved, as reflected in Moody’s assessment released in August 2025. In addition, IMF program also supported the overall macroeconomic conditions.
The country’s total liquid foreign exchange reserves stood at USD21.293 billion as of April 30, 2026. Of this, the SBP held USD15.851 billion, while net reserves held by commercial banks amounted to USD5.443 billion.
Copyright Business Recorder, 2026
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