Pakistan receives $1.2bn IMF tranche under EFF
ISLAMABAD: Pakistan has received a $1.2 billion installment from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), sources in the finance ministry confirmed on Thursday.
According to officials, the State Bank of Pakistan (SBP) has been credited with the third tranche of $1 billion, along with an additional $200 million allocated for climate-related initiatives. The fresh inflow is expected to support Pakistan’s fiscal stability while strengthening resources for environmental and climate-resilience projects.
The development comes two days after the IMF Executive Board approved $1.29 billion in new disbursements for Pakistan following the completion of its latest review of the country’s economic reform program.
As per the IMF statement, the Board cleared $1.09 billion under the ongoing EFF arrangement, along with the first $200 million tranche from the Resilience and Sustainability Facility (RSF), designed to back climate adaptation and mitigation efforts.
This marks the third EFF tranche since Pakistan secured the 37-month program in September 2024. The country earlier received $1 billion in September 2024, followed by another $1 billion in May 2025.
The Executive Board’s approval followed a detailed review meeting held in Washington, where Pakistan’s progress on fiscal discipline, monetary tightening, and structural reforms was examined. Officials expect the newly released funds to further strengthen Pakistan’s external financing position as the government continues efforts to stabilize the economy amid persistent inflation and climate-related challenges.
