KEY POINTS
- IMF Board clears second EFF and first RSF reviews
- Minister says Pakistan’s buffers helped absorb flood shock
- Govt sees disbursements reinforcing reform momentum
ISLAMABAD: International Monetary Fund (IMF) Executive Board’s approval of Pakistan’s latest programme reviews confirms the economy is on a growth track and the country’s stabilisation agenda is on course.
Finance Minister Senator Muhammad Aurangzeb, responding to the Board decision, said the clearance of the second review of the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF) represented an acknowledgement that Pakistan had met the programme’s key performance targets. In doing so, Pakistan has strengthened fiscal management, improved external stability, and expanded the social safety nets.
He said the Fund’s assessment noted Pakistan’s ability to absorb the recent flood shock without requiring an immediate global relief appeal. “Reserved buffers and more predictable external financing improved resilience in Pakistan’s economy,” he added. According to the Minister, this validation from the IMF sends a signal that Pakistan is gradually rebuilding its economic resilience.
The IMF Board approvals would enable disbursements of about US$1.3 billion, adding support to the government’s reform programme.
Under the EFF, which has a total access of about US$7 billion according to the IMF website, Pakistan has so far drawn roughly US$2.2 billion from the first and second tranches. After the upcoming disbursement of about US$1 billion, the remaining available amount under the current cycle will be a little under US$4 billion.
Separately, the RSF arrangement approved by the IMF provides climate‑resilience financing of around US$1.3 to US$1.4 billion. Pakistan has received about US$300 million under the RSF so far, and the latest approval of US$200 million leaves more than US$900 million available for climate‑adaptation, disaster‑preparedness and resilience‑building reforms.
The reforms cover revenue measures, tighter expenditure controls, early steps on energy sector correction and improved oversight of state‑owned enterprises. The Minister said these measures, though demanding, were essential for restoring confidence in public institutions and reducing long‑standing vulnerabilities.
