Save Our Pak
State Bank of Pakistan (SBP) said Wednesday it had received its second instalment of $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) program.
“SBP has drawn the second instalment of SDR 760 million (US$ 1,023 million) from the IMF under the EFF program. The amount will be reflected in SBP’s foreign exchange reserves for the week that ended on 16th May 2025,” the central bank’s statement read.
Analysts said the tranche will help to relieve the pressure on the rupee and balance of payments in the next few months.
The money will come after being approved by the Executive Board of the International Monetary Fund (IMF) on Friday, which approved the second loan tranche of $1 billion meant for Pakistan and a new $1.3 billion program despite India’s attempt to block the approval.
IMF has released the $1 billion second loan tranche under EFF and $1.3 billion would be given during the next 28 months.
That inflow is geared towards steadying the economy and the continued reforms. Increasing its liquid reserves, creating a much-sought-after fiscal space, and assisting the government to cover its external financing needs are the ways these finances should support the SBP.
Experts argue that this endorsement has positive implications because it gives the other international lenders and development partners a favorable signal, which might signal the way for more financial support and investment opportunities. However, they also warn that Pakistan needs to stick to structural reforms to achieve long-term economic sustainability.
The current IMF program is set to wind up in mid-2025, with negotiations for a longer-term arrangement said to take place to facilitate continued financial support and reforms spearheaded. The government will continue its efforts to strengthen the economy’s fundamentals and restore macroeconomic stability over the coming months.
