The IMF board will evaluate the $1.2 billion transfer to Pakistan on May 8.

The executive board of the International Monetary Fund (IMF) is set to convene on May 8 to deliberate on the approval of over $1.2 billion for Pakistan under two existing financing programs.

The anticipated payout comprises approximately $1 billion from the $7 billion Extended Fund Facility and around $210 million from the Resilience and Sustainability Facility, contingent upon satisfactory program evaluations.

The progression adheres to a staff-level accord established in March, when Pakistan and the IMF concurred on initiatives designed to bolster state finances, sustain macroeconomic stability, and promote structural reforms.

Authorities indicated that negotiations between Islamabad and the Fund have concentrated on gasoline price modifications, subsidy optimisation, and achieving petroleum levy objectives specified in the existing fiscal framework.

The IMF has recognised advancements in Pakistan’s economic recovery, noting subdued inflation, enhanced external buffers, and increasing market confidence, while cautioning that regional tensions and fluctuating energy prices may threaten the outlook.

IMF officials state that approval by the executive board would increase Pakistan’s total payouts under the two arrangements to around $4.5 billion.

Pakistan has reiterated its dedication to fiscal discipline, comprehensive tax reforms, expenditure management, and social protection initiatives, while maintaining discussions with the IMF regarding flexibility in the forthcoming year’s budget framework.

The lender has observed advancements in climate-related reforms facilitated by the resilience facility, designed to mitigate vulnerabilities and enhance long-term economic stability.