By Staff Reporter
KARACHI: The International Monetary Fund’s Executive Board will meet on May 9 to review Pakistan’s $7 billion bailout and consider a $1.3 billion climate resilience loan, the lender’s website showed on Tuesday.
The session will evaluate the first performance review under the Extended Fund Facility (EFF) and a request for financing via the Resilience and Sustainability Facility (RSF).
Approval would release a $1 billion tranche from the 37-month EFF, secured in July 2024, bolstering Pakistan’s strained finances.
Finance Minister Muhammad Aurangzeb, speaking in Washington recently, expressed confidence in early May approval. The funds are vital for stabilising the country’s economy, which has leaned on IMF support to shore up reserves and restore market trust.
The $7 billion program, structured around six reviews, targets fiscal discipline, low inflation, and inclusive growth.
March’s first review, concluded without new revenue measures, drew praise from IMF mission chief Nathan Porter for “strong” implementation. He highlighted progress in cutting public debt, maintaining tight monetary policy, and advancing energy sector reforms.
Concurrently, the board will assess Pakistan’s $1.3 billion RSF request to fund climate resilience, following a technical IMF mission to Islamabad. Pakistan, acutely vulnerable to floods and heatwaves, sees the facility as critical for adaptation.
The funding under RSF is made available to nations that commit to high-quality reforms to build resilience against climate catastrophes through adaptation. It is repayable over 30 years, including a 10-year grace period, and is normally cheaper than terms for an Extended Fund Facility (EFF), such as the $7 billion loan program with Pakistan, which is underway.
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