WASHINGTON – The International Monetary Fund (IMF) has approved a $1 billion disbursement to Pakistan under the $7 billion Extended Fund Facility (EFF), following the successful completion of the programme’s first review.
The decision was taken during a meeting of the IMF Executive Board held in Washington, D.C., where the board formally endorsed the first review of the EFF arrangement. As a result, the $1 billion tranche has been released immediately to Islamabad.
This approval follows a staff-level agreement reached on March 25, 2025, between IMF officials and the Government of Pakistan.
The IMF Executive Board also endorsed a new 28-month Resilience and Sustainability Facility (RSF) arrangement for Pakistan, granting access to up to $1.3 billion. The RSF aims to support the country’s efforts toward climate resilience and sustainability.
Meanwhile, an Indian official reportedly told the international news agency Reuters that India had urged the IMF to reconsider its financial assistance to Pakistan.
The Indian government accused Pakistan of allowing its territory to be used for terrorist activities targeting India, particularly in the Jammu and Kashmir region.
The IMF, however, firmly rejected India’s allegations and proceeded with the approval of the $1 billion disbursement to Pakistan.
