IMF to Review Pakistan Funding, Reforms at May 8 Meeting

The International Monetary Fund’s Executive Board is scheduled to convene on May 8th to evaluate Pakistan’s economic program. Approval of the third review under the Extended Fund Facility (EFF) appears likely, according to sources familiar with the matter.

A staff-level agreement was reached on March 27th for a $1.2 billion tranche release to Pakistan, which is seen as significant progress toward approval. The Board will also review Pakistan’s Resilience and Sustainability Facility (RSF) program related to climate change, expected to be approved, resulting in an additional $210 million disbursement.

Pakistan anticipates receiving approximately $7 billion under the EFF and RSF programs. The third review has been positively assessed, bolstering expectations of further inflows, including around $1 billion tied to the review.

Meanwhile, officials at the finance ministry are engaged in consultations with the IMF regarding oil pricing. Progress has been made in reducing subsidies, with a petroleum levy target set for 1.47 trillion rupees for the current fiscal year.