IMF confirms Pakistan met all targets under Extended Fund Facility

The International Monetary Fund (IMF) has approved another round of financial help for Pakistan. The decision came after Pakistan met all the targets set under the Extended Fund Facility (EFF) program.

During a press briefing on Thursday, IMF spokesperson Julie Kozack confirmed that Pakistan had successfully completed the first review of the program. She said Pakistan had made good progress in reforms and met all the conditions required by the IMF.

Kozack explained that all IMF funds are sent directly to the State Bank of Pakistan. None of the money goes into the government’s budget. The money is only used to strengthen Pakistan’s foreign reserves and improve its ability to handle international payments.

She also said that the IMF has strict rules to make sure the money is used properly. The IMF checks whether countries follow the rules and makes sure the goals are being met.

The IMF approved the EFF program for Pakistan in September 2024. The first review was planned for early 2025, and both the IMF and Pakistan reached an agreement on March 25, 2025. This agreement was later approved by the IMF Executive Board on May 9, 2025.

Following this approval, Pakistan received the next portion of the funds.

There were also questions about the role of India’s representative in the IMF. Kozack made it clear that each country selects its own Executive Director. The IMF does not interfere in these decisions.

She added that the IMF Board usually makes decisions by consensus, not by formal voting. In Pakistan’s case, there was enough support among members to approve the next steps of the program.

Kozack stressed that IMF money is not for budget use. It’s only to fix balance of payments problems. She made three main points:

1. The money is meant to support international payments.

2. All disbursements go to the central bank reserves.

3. The central bank is not allowed to lend this money to the government.

The EFF program also includes long-term reforms. These reforms are meant to improve governance, reduce debt, and strengthen fiscal policies. All the program conditions are listed in public IMF documents.