Pakistan Expected to Receive $1.2 Billion IMF Tranche After Executive Board Review

Pakistan is expected to secure a $1.2 billion tranche from the International Monetary Fund (IMF) as the Fund’s Executive Board meets on Friday to assess the country’s economic performance under the ongoing programme.

According to official sources, approval of the disbursement is widely anticipated following Pakistan’s progress in meeting key IMF conditions.

Sources stated that Pakistan has successfully achieved 13 out of 17 major targets set under the IMF programme, with no significant hurdles remaining ahead of the board’s decision.

The State Bank of Pakistan has reportedly met important foreign exchange reserve and financial performance benchmarks. Officials also confirmed that the country’s fiscal deficit remains within the limits agreed upon with the IMF.

Provincial governments have reportedly achieved tax collection targets amounting to Rs568 billion, while limits on sovereign guarantees have also remained under the approved ceiling of Rs4,542 billion.

Officials further said the State Bank has not provided new lending to the government, in line with IMF programme requirements.

The IMF has set June 2026 as the deadline for completing the remaining structural reforms and programme targets.

Pakistan is expected to receive funding under both the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).

Sources added that the third review under the EFF programme has already been completed successfully. In addition, Pakistan could receive another $210 million following the second review under the RSF arrangement.

Pakistan and the IMF had reached a staff-level agreement on March 27. If approved by the IMF Executive Board, the $1.2 billion tranche is expected to be released shortly afterward.