ISLAMABAD: The International Monetary Fund (IMF) has approved Pakistan’s latest request for more than $1 billion under its Resilience and Sustainability Facility (RSF), as part of a key meeting held Friday.
According to details, the IMF’s decision follows a successful review of Pakistan’s economic performance, marking a key step forward in the country’s ongoing engagement with the Fund.
Sources said the meeting discussed and reviewed both the $1.3 billion staff-level agreement under the Extended Fund Facility (EFF) and the RSF.
By getting through the review, Pakistan has also qualified for the next tranche of funding under a separate $7 billion programme.
The approval brings much-needed relief to Islamabad as it navigates persistent fiscal challenges and seeks to stabilise its economy. The disbursement is part of the broader financial arrangement aimed at supporting Pakistan’s reform efforts and ensuring macroeconomic stability.
The development is a major setback for India, which had asked the IMF to review loans disbursed to Pakistan after tensions escalated between the South Asian neighbours following a deadly attack in Kashmir.
In a recent move, India had also terminated Dr Krishnamurthy Subramanian as a board member and Executive Director (India) at the IMF, seemingly in an attempt to interfere with the scheduled IMF meeting on May 9.
However, the Indian pressure, as expected, could not affect the IMF Executive Board approval, as Pakistan is already part of the programme. The country has fulfilled all prerequisites and secured staff-level approval without any additional conditions.
