Pakistan has received a second installment of special drawing rights totaling $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) program, as announced by the central bank on X this Wednesday.
The State Bank of Pakistan noted that this amount will be included in the foreign exchange reserves for the week ending May 16.
Last week, the IMF approved an immediate payment of around $1 billion to Pakistan as part of the existing EFF, along with additional arrangements for $1.4 billion through resilience and sustainability facilities (RSF).
In a statement released last Friday, the IMF indicated that its Executive Board has completed an initial review of Pakistan’s economic reform efforts supported by the EFF arrangement.
“This decision enables immediate disbursements of approximately $1 billion (SDR 760 million), bringing total payments to about $2.1 billion (SDR 15.2 billion). Moreover, the IMF Executive Board approved the authorities’ arrangement request under the RSF, authorizing around $1.4 billion (SDR 110 million).
It was highlighted that Pakistan’s policy initiatives under the EFF have made “significant progress” in stabilizing the economy and restoring confidence amid challenging global conditions.
“Fiscal performance is robust, with a notable surplus of 2% of gross domestic product achieved in the first half of FY2025, and Pakistan is on a path to meet its final target of 2.1% of GDP.
“In April, inflation decreased to an unprecedented low of 0.3%, and advances in development, along with stable domestic and external conditions, prompted the State Bank to lower its policy rate by 1,100 basis points from June 2025. This is expected to be restored in the medium term.”
Meanwhile, the RSF will aid the government in reducing vulnerabilities to natural disasters and enhancing economic and climate resilience.
A statement from the Prime Minister’s Office expressed that Prime Minister Shebaz Sharif was pleased with the “ineffectiveness of India’s hearing tactics” against Pakistan.
“The economic landscape in the country is improving, and we are progressing toward development. India is attempting to divert attention from our country’s growth through unilateral aggressions.
“International organizations have a responsibility to reject the false promotion of India. India’s efforts to undermine the IMF program have not succeeded,” the prime minister stated.
