KARACHI: The International Monetary Fund (IMF) has scheduled a key meeting of its Executive Board on May 9, 2025, to review Pakistan’s ongoing $7 billion bailout under the Extended Fund Facility (EFF) and a proposed $1.3 billion loan under the Resilience and Sustainability Facility (RSF), according to the IMF’s official website.
The global lender and Pakistan reached a staff-level agreement in March on the first review of the EFF and the new climate-focused RSF program. Once formally approved by the Executive Board, the agreement is expected to trigger the immediate release of approximately $1 billion in funds to support Pakistan’s economic recovery.
The Extended Fund Facility is part of a larger effort to stabilize Pakistan’s economy, which has faced significant challenges in recent years. The RSF loan, meanwhile, is designed to enhance Pakistan’s resilience to climate-related risks, including natural disasters. It will also support improvements in climate planning, water resource efficiency, and energy sector reforms aligned with environmental goals.
According to the IMF’s official listing:
“May 9, 2025 — Pakistan: First review under the extended arrangement under the Extended Fund Facility, request for Modification of Performance Criteria, and request for an arrangement under the Resilience and Sustainability Facility.”
Strengthening Climate Resilience
Pakistan is among the countries most affected by climate change. In 2022, devastating floods caused by record rainfall and glacier melt resulted in the loss of over 1,700 lives and inflicted damages exceeding $33 billion. The RSF aims to help countries like Pakistan better plan for and mitigate the risks posed by such climate events.
Recent Economic Progress
Pakistan’s economy has shown signs of stabilization in recent months. Inflation has eased, and financial reforms continue under the IMF’s guidance. Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to the reform agenda, which includes steps to reduce public debt, improve energy sector efficiency, and boost long-term growth.
The country secured the current EFF package in September 2024, following a major effort to steer the economy away from default in 2023. Since then, structural reforms have focused on fiscal discipline, inflation control, and investment promotion.
Investment and Trade Partnerships
Looking ahead, Pakistan is working to expand exports and attract foreign investment, particularly from regional partners. In recent months, Islamabad has signed multi-billion-dollar memoranda of understanding (MoUs) with several countries, including Saudi Arabia, the UAE, Azerbaijan, China, and others, aimed at boosting trade, infrastructure, and energy collaboration.
