KARACHI: Pakistan’s central bank said on Wednesday it had received about $1.3 billion from the International Monetary Fund (IMF) under the country’s ongoing bailout and climate resilience programs, boosting foreign exchange reserves as Islamabad seeks to stabilize its economy.
The State Bank of Pakistan (SBP) said the IMF Executive Board had approved the latest disbursements after completing the third review of Pakistan’s Extended Fund Facility (EFF) program during a meeting on May 8.
The funds include about $1.1 billion under Pakistan’s ongoing IMF bailout program and roughly $220 million under a separate clime Resilience and Sustainability Facility (RSF), the SBP said. The funds lifts total disbursements under the two ongoing programs to about $4.8 billion.
“SBP has received SDR 914 million (equivalent to about $1.3 billion) under the EFF and RSF in value 12 May 2026 from the IMF,” the central bank said in a statement. “The amount would be reflected in SBP’s foreign exchange reserves for the week ending on 15 May 2026.”
Pakistan’s ongoing $7 billion IMF bailout program was approved in September 2024 and remains central to the government’s efforts to stabilize the economy after years of balance-of-payments pressure, high inflation and dwindling foreign reserves.
The RSF arrangement is designed to support climate resilience and sustainable reform initiatives in countries vulnerable to climate shocks. Pakistan has repeatedly cited the economic impact of devastating floods and climate-related disasters in recent years while seeking international financial support.
The latest IMF approval came despite concerns over external risks linked to tensions in the Middle East and volatility in global energy markets, which remain a major vulnerability for Pakistan’s import-dependent economy.
In April, Pakistan’s central bank raised its key policy rate by 100 basis points to 11.5 percent, marking its first hike in almost three years.
Separately, Finance Minister Muhammad Aurangzeb on Wednesday briefed a visiting IMF mission on Pakistan’s macroeconomic outlook, fiscal strategy and preparations for the upcoming federal budget, according to a finance ministry statement. The minister said exports and remittances were showing positive trends and reiterated the government’s commitment to export-led growth and structural reforms.
