The International Monetary Fund (IMF) approved a $1 billion loan to Pakistan on May 9, 2025, under its Extended Fund Facility (EFF).
This decision followed the IMF Executive Board's completion of the first review of Pakistan's economic reform program, which was initially approved in September 2024.
The $1 billion disbursement is part of a broader $7 billion, 37-month EFF arrangement aimed at stabilizing Pakistan's economy through structural reforms. With this tranche, total disbursements under the program amount to approximately $2.1 billion.
Additionally, the IMF approved Pakistan's request for an arrangement under the Resilience and Sustainability Facility (RSF), granting access to around $1.4 billion.
The RSF is intended to support countries facing climate vulnerabilities and natural disasters by strengthening long-term macroeconomic stability and resilience.
India abstained from the IMF Executive Board vote, expressing concerns that the funds could be misused to support cross-border terrorism and highlighting Pakistan's history of repeated IMF bailouts without lasting reforms.
Despite these objections, the IMF proceeded with the loan approval, emphasizing Pakistan's compliance with the program's technical criteria and reform benchmarks.
