International Monetary Fund Tranche Approval for Pakistan Likely in May After Majority Targets Met
Pakistan is expected to receive a $1.2 billion tranche from the International Monetary Fund (IMF) in May 2026 after meeting most of the required performance benchmarks under its ongoing programme.
According to reports, Pakistan has successfully achieved 14 out of 17 quantitative performance and indicative targets set for the end of December 2025 under the IMF-supported arrangement.
Programme Performance Review
The IMF staff has completed its assessment and submitted a report to the Executive Board, which is expected to consider approval of the fourth tranche.
Key fiscal and monetary targets were largely met, including limits on the general government primary deficit, government guarantees, and central bank-related financial indicators.
Spending on social sectors such as health and education reached approximately Rs1,360 billion by December 2025, in line with programme requirements.
Areas of Shortfall
Some targets were not fully achieved or could not be verified. The Federal Board of Revenue (FBR) did not meet its tax collection target for the period, while data for certain indicators, including new tax filers, was not available.
Revenue collection from retailers, which was part of the agreed tax reforms, also fell short of expectations.
Financial Stability Indicators
The report noted improvements in several macroeconomic indicators, including:
- Stabilization of net international reserves
- Controlled government borrowing within agreed limits
- Compliance with central bank asset and liability targets
- Continued support for social protection spending through programmes like the Benazir Income Support Programme (BISP)
Outlook for Disbursement
Based on the overall assessment, IMF staff has recommended consideration of the $1.2 billion tranche, which is expected to be reviewed by the Executive Board in May 2026.
Officials say the review reflects mixed progress, with strong compliance in key areas but ongoing challenges in tax collection and revenue expansion.
Broader Context
Pakistan remains under a multi-billion-dollar IMF support programme aimed at stabilizing the economy, improving fiscal discipline, and strengthening external financial reserves.
Future disbursements will depend on continued implementation of reforms and meeting agreed benchmarks.
