KARACHI: Pakistan has received the second tranche of special drawing rights worth 760 million ($1,023 million) from the International Monetary Fund under an extended fund facility (EFF) program, the State Bank of Pakistan said on Wednesday, bringing disbursements to $2 billion within a $7 billion bailout program. 

The IMF last Friday approved a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash. 

“SBP has received the second tranche of SDR 760 million ($ 1,023 million) from the IMF under the EFF program,” the central bank said on X. 

“The amount will be reflected in SBP’s foreign exchange reserves for the week ending on 16th May 2025.”

In a statement released on Friday, the IMF said Pakistan’s policy efforts under the program had “already delivered significant progress in stabilizing the economy and rebuilding confidence, amidst a challenging global environment.” 

“Moving forward, policy priorities will include advancing reforms to strengthen competition, raise productivity and competitiveness, reform SOEs, improve public service provision and energy sector viability, and build climate resilience.”

The IMF also approved a request for an arrangement under the Resilience and Sustainability Facility (RSF), which will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters, with access of around $1.4 billion.

“The RSF funds will be released gradually over the next 28 months,” the government’s finance adviser Khurram Schehzad told Arab News, declining to specify when the first tranche would be received. 

Pakistan’s 37-month EFF, approved on Sept. 25, 2024, aims to build resilience and enable sustainable growth. Key priorities include entrenching macroeconomic sustainability through implementation of sound macro policies, including rebuilding international reserve buffers and broadening of the tax base; advancing reforms to strengthen competition and raise productivity and competitiveness; reforming state-owned enterprises and improving public service provision and energy sector viability; and building climate resilience.

Highlighting progress in stabilizing the economy, the IMF said Pakistan’s fiscal performance had been strong, with a primary surplus of 2.0 percent of GDP achieved in the first half of FY25, keeping Pakistan on track to meet the end-FY25 target of 2.1 percent of GDP. 

“Inflation fell to a historic low of 0.3 percent in April, and progress on disinflation and steadier domestic and external conditions, have allowed the State Bank of Pakistan to cut the policy rate by a total of 1100 bps since June 2025,” the IMF added.

“Gross reserves stood at $10.3 billion at end-April, up from $9.4 billion in August 2024, and are projected to reach $13.9 billion by end-June 2025 and continue to be rebuilt over the medium term.”