ISLAMABAD: The International Monetary Fund (IMF) has approved over $1 billion for Pakistan under its Resilience and Sustainability Facility (RSF), following a key Executive Board meeting held on Friday.
The approval comes after a successful review of Pakistan’s economic performance, representing a significant milestone in the country’s ongoing collaboration with the IMF.
Sources indicate that the meeting covered both the $1.3 billion staff-level agreement under the Extended Fund Facility (EFF) and the RSF package.
With the completion of this review, Pakistan also qualifies for the next tranche under a separate $7 billion IMF programme—bringing crucial relief as Islamabad works to manage persistent fiscal pressures and stabilize its economy.
The disbursement forms part of a broader support framework aimed at advancing Pakistan’s reform agenda and ensuring macroeconomic stability.
This development also comes as a diplomatic blow to India, which had reportedly urged the IMF to reassess its lending to Pakistan following heightened tensions between the two countries after a deadly incident in Kashmir.
In an unusual move, India recently removed Dr. Krishnamurthy Subramanian from his position as IMF Executive Director, a decision seen by many as an effort to disrupt the IMF’s scheduled meeting on May 9.
However, the IMF Executive Board proceeded unaffected, with Pakistan securing approval without any new conditions—having already met the necessary requirements and received staff-level clearance.
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