IMF Board Approval to Deposit $1.2 Billion At SBP Expected on 8 May

The Executive Board of the International Monetary Fund (IMF) is set to meet on Friday (May 8) to consider releasing a $1.2 billion tranche for Pakistan.

This tranche is part of the $7 billion Extended Fund Facility and the Resilience and Sustainability Facility.

Around $1 billion relates to the EFF program following completion of its third review, while approximately $210 million is tied to climate-focused reforms under the RSF.

The IMF had already reached a staff-level agreement in late March for the upcoming board decision. Since then, discussions have continued on fiscal adjustments, particularly around fuel pricing and petroleum levy targets.

Despite earlier subsidies on fuel, Pakistan has already collected over Rs. 1.2 trillion in petroleum levies in the first nine months of the fiscal year.

The government is still considering further adjustments, including possible changes to petrol and diesel levies to woo the lender.

The Fund has consistently pushed for reduced fuel subsidies and stronger fiscal discipline.

If approved, total IMF disbursements under the two programs would rise to about $4.5 billion.