Pakistan receives second tranche of $1,023 million from IMF under extended fund facility

In its board meeting on Friday, the IMF had cleared a $1-billion tranche for Pak

The International Monetary Fund (IMF) sent the second tranche of special drawing rights to Pakistan, the State Bank of Pakistan (SBP) said on Wednesday. The second tranche, worth $1,023 million, is part of IMF's extended fund facility programme.

Pakistan's central bank said in a post on X that the amount will be reflected in its foreign exchange reserves for the week ending May 16. In the tweet, SBP wrote: "SBP has received the second tranche of SDR 760 million (US$ 1,023 million) from the IMF under the EFF program. The amount will be reflected in SBP’s foreign exchange reserves for the week ending on 16th May 2025."

The tranche approved for Pak was part of its $7-billion Extended Fund Facility (EFF) lending program and $1.3 billion tranche under the Resilience and Sustainability Facility (RSF).

In its board meeting on Friday, the IMF had cleared a $1-billion tranche for Pak, despite of India's concerns regarding these funds being misused for financing cross-border terrorism into India.  As per a Ministry of Finance release, India raised Pakistan's “poor track record” and also on the possibility of “misuse of debt financing funds for state-sponsored cross-border terrorism” during the vote, and abstained from voting as rules do not allow a formal "no" vote.

Reuters reported Pak officials as saying that IMF has sanctioned $1 billion in cash after the first review of the $7 billion programme for the country, and after the review, the country stood to receive $2 billion from the $7 billion programme. After approving the $1 billion disbursement to Pakistan on Saturday, IMF posted on X, "IMF Board approved the first review of Pakistan’s economic reform program under the EFF, enabling a disbursement of ~ $1 billion, reflecting strong programme implementation which has contributed to continuing economic recovery."

"It also approved a ~$1.4 billion arrangement under the RSF to bolster PK’s resilience to natural disasters and to enhance budget and investment planning to promote climate adaptation," it further added.