Pakistan secures $1.32 billion IMF funding amid push for reforms, economic stability
The latest decision will allow Pakistan to immediately withdraw about $1.1 billion under the Enhanced Funding Facility (EFF) and about $220 million under the Resilience and Sustainability Facility (RSF), the multilateral lender said in a statement after its board meeting in Washington DC on Friday.
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With this, the total disbursement to Pakistan under the two ongoing programs will increase to approximately $4.8 billion.
Last year, India had opposed the IMF’s continued financial support to Pakistan, expressing concerns about the effectiveness of such bailouts and pointing out “the possibility of misuse of funds for state-sponsored cross-border terrorism”. India has called on multilateral lending institutions to ensure that aid to Pakistan is used for its intended purpose.
In May 2025, during India’s Operation Sindoor against Pakistan, the IMF board approved a payment of $1 billion to Islamabad under the existing Enhanced Fund Facility program, which includes support totaling $7 billion. It also cleared a $1.4 billion line of credit for climate change resilience initiatives.
India abstained from the IMF board meeting because IMF rules do not allow voting against the proposals. Member states can either vote in favor or abstain. The IMF said Pakistan’s 37-month EFF arrangement was approved in September 2024 to build resilience and enable sustainable growth. In May 2025, the IMF also approved a 28-month RSF program to support climate change resilience and broader economic reforms.
Such multi-year lending programs are often linked to performance targets that are periodically reviewed by IMF staff before the issuance of each tranche.
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“The strong practices of the (Pakistani) authorities despite the Middle East war have maintained economic stability and improved financing and external conditions,” the IMF said in its statement. The statement was included.
However, he added that Pakistan will need to maintain strong policies and pursue structural reforms to strengthen resilience in the face of war-related shocks and ensure sustainable long-term growth.
India had told the IMF last year that Pakistan had received payments from the multilateral lender in 28 of the 35 years since 1989, including four programs in the last five years alone.
India argued that Pakistan would not need another bailout if previous programs had succeeded in creating a sound macroeconomic environment.
