What happened
The executive board of the International Monetary Fund (IMF) has approved $1.2 billion in loan tranches for Pakistan, The Nation reported on 9 May 2026. The package comprises $1 billion under the Extended Fund Facility (EFF) and $200 million under the Resilience and Sustainability Facility (RSF).
The report said Pakistan is expected to receive the inflows in the coming week, which would lift the foreign exchange reserves held by the State Bank of Pakistan to about $17 billion.
Where Pakistan’s reserves stand
With the approval, Pakistan has received $4.5 billion from the IMF against two separate debt packages totalling $8.4 billion, according to the report. Total liquid foreign reserves stood at $21.293 billion as of 30 April 2026, the report said, comprising $15.850 billion held by the State Bank of Pakistan and $5.442 billion in net foreign reserves held by commercial banks.
Background
The disbursement follows a staff-level agreement reached on 27 March 2026 between IMF staff led by Iva Petrova and Pakistani authorities. The report said the agreement came after detailed policy discussions held in Karachi and Islamabad from 25 February to 2 March 2026 and subsequently through virtual engagements.
Why it matters
The tranches would add to Pakistan’s external buffers at a time when the government has been drawing on multiple financing lines. The report framed the approval as the release of funds already anticipated under the two programmes rather than a new lending arrangement.
Sources & reporting notes
This is a summary of published material, not independent reporting. Source reviewed on 2026-05-09.
- The Nation — "IMF board approves $1.2b for Pakistan"9 May 2026 · Reports the executive board approval, the EFF and RSF components, the resulting reserves position and the March staff-level agreement.
