Pakistan Receives 2nd Loan Tranche of $1.023 Billion From IMF

The State Bank of Pakistan (SBP) on Wednesday said it had received the second $1.023 billion tranche from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) program. “SBP has received the second tranche of SDR 760 million (US$ 1,023 million) from the IMF under the EFF program. The amount will be reflected in SBP’s foreign exchange reserves for the week ending on 16th May 2025,” the central bank’s statement read. https://x.com/StateBank_Pak/status/1922541925879398807 Analysts said the tranche will help ease pressure on the rupee and support the country’s balance of payments in the coming months. The funds come after the Executive Board of the International Monetary Fund (IMF) Friday approved the second loan tranche of $1 billion for Pakistan and a new $1.3 billion program despite India’s attempt to block the approval. The IMF has promptly released the $1 billion second loan tranche under the EFF, while the $1.3 billion would be distributed over the next 28 months. The inflow are aimed at stabilizing the economy and supporting ongoing reforms. The funds are expected to strengthen the SBP’s reserves, provide much-needed fiscal space, and help the government meet its external financing requirements.