📢 IMF Executive Board to Review Pakistan’s Bailout and Climate Loan on May 9 🇵🇰💼
Big news for Pakistan’s economy! The IMF Executive Board is set to meet on May 9, 2025, to review two major financial programs for Pakistan:
✅ $7 Billion Extended Fund Facility (EFF):
The review may unlock a $1 billion tranche, boosting Pakistan’s reserves and economic stability.
🌱 $1.3 Billion Resilience and Sustainability Facility (RSF):
This new 28-month program will help Pakistan tackle climate-related challenges, including better water management and climate budgeting.
Finance Minister Muhammad Aurangzeb remains optimistic about approval, which would be a vital step toward economic recovery and global investor confidence.
IMF Executive Board to Discuss Pakistan’s $7 Billion Bailout and $1.3 Billion Climate Resilience Program on May 9
In a crucial development for Pakistan’s economic trajectory, the International Monetary Fund (IMF) Executive Board is scheduled to meet on May 9, 2025, to review two major financial arrangements: the continuation of Pakistan’s ongoing bailout under the Extended Fund Facility (EFF), and the approval of a new climate-focused program under the Resilience and Sustainability Facility (RSF).
$7 Billion Extended Fund Facility (EFF) – 1st Review
This meeting will mark the first review of Pakistan’s 9-month Stand-By Arrangement under the EFF, initially agreed in 2023. If approved, Pakistan is expected to receive a disbursement of approximately $1.1 billion, which would bring the total received under the program to around $2 billion.
The review follows a staff-level agreement signed in March 2025, under which Pakistan committed to maintaining fiscal discipline, increasing revenue collection, and sustaining structural reforms to ensure macroeconomic stability.
$1.3 Billion Resilience and Sustainability Facility (RSF) – New Approval
Alongside the EFF, the Board will also consider a fresh 28-month, $1.3 billion loan under the RSF, aimed at enhancing Pakistan’s resilience to climate change and supporting environmentally sustainable reforms. Key areas targeted under this facility include:
Climate budgeting and disaster preparedness
Sustainable water resource management
Strengthening institutional capacity to respond to climate shocks
This RSF loan will support Pakistan’s broader climate adaptation goals and complement ongoing international partnerships in the field of sustainability and green development.
Why This Matters
With Pakistan still recovering from high inflation, currency depreciation, and fiscal pressures, the IMF’s backing is vital for restoring investor confidence and improving the country’s foreign exchange reserves. The combined approval of both programs is expected to unlock multilateral and bilateral financing, strengthening Pakistan’s position in global markets.
