The International Monetary Fund is expected to release around $1.2 billion to Pakistan following a scheduled executive board meeting in the first week of May, as part of the country’s ongoing $7 billion loan program.
According to officials from the finance ministry, there are currently no major obstacles to the disbursement, as Pakistan has successfully met all key conditions set by the IMF under the program.
In addition to the main tranche, Pakistan is also likely to receive $210 million under the Resilience and Sustainability Facility (RSF), aimed at supporting climate-related financing initiatives.
The government has kept the IMF informed about its targeted petroleum subsidy plan, holding consultations before passing on rising global oil prices to domestic consumers. Officials stated that the subsidy will be financed within the current fiscal year’s budget, with an additional Rs. 300 billion in emergency funds available if needed.
On the external financing front, Pakistan has assured the IMF regarding the rollover of deposits from friendly countries, with discussions ongoing for long-term extensions. Currently, the State Bank of Pakistan holds approximately:
- $5 billion from Saudi Arabia
- $4 billion from China
- $3 billion from the UAE
Out of the UAE deposits, $2 billion is maturing this month and $1 billion in July, with officials expressing confidence that these amounts will be rolled over.
The expected inflow from the IMF is likely to provide much-needed support to Pakistan’s foreign exchange reservesand help stabilize the country’s external financing position amid ongoing economic challenges.
