Pakistan and IMF Begin Review of $7 Billion Loan Programme

A team from the International Monetary Fund (IMF), led by Iva Petrova, has commenced talks with Pakistani authorities to review ongoing financial arrangements under the $7 billion Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The mission will also include discussions as part of the IMF's Article IV Consultation, according to Mahir Banici, IMF Resident Representative to Pakistan.

The EFF programme, approved by the IMF Executive Board in late September 2024, is a 37-month bailout package valued at approximately $7 billion (SDR 5,320 million). Pakistan also formally requested the RSF programme in October 2024, leading to a staff-level agreement on a new 28-month, $1.3 billion facility on March 25, 2025. This agreement coincided with the completion of the first EFF review.

The ongoing review under discussion marks the fourth review of the EFF and the third under the RSF. If IMF staff and Pakistani authorities reach a staff-level agreement, it will then be presented to the IMF Executive Board for approval.

Should the Executive Board approve the reviews, Pakistan would gain access to about $1 billion from the EFF and $200 million from the RSF. Up to now, the country has received a total of $4.8 billion under these two financial arrangements.