The IMF Executive Board will gather on May 9 to assess Pakistan’s request for a $1.3 billion climate resilience loan under the Resilience and Sustainability Facility (RSF). It will also review the first ongoing $7 billion Extended Fund Facility (EFF) bailout.
Approval will release a risky $1 billion amount from the 2024 approved package, boosting Pakistan’s economic stabilization efforts. This will mark the first evaluation of Pakistan’s 37 month EFF program, which aims to ensure macroeconomic stability and inclusive growth.
The review follows productive March discussions, during which IMF mission chief Nathan Porter noted “A strong implementation,” including fiscal consolidation, tight monetary policy, and energy sector reforms.
A separate IMF team also evaluated Pakistan’s climate resilience financing needs. Finance Minister Aurangzeb is waiting for the Board’s approval in early May. The $7 billion program, spanning six reviews, helped stabilize Pakistan’s economy.
The stabilization happened as a result of the external financing and the restoration of market confidence. The RSF arrangement will further support climate related structural reforms.