New Delhi: The International Monetary Fund (IMF) board has completed reviews of some of its lending arrangements with Pakistan, paving the way for fresh funding of about $1.32 billion for Islamabad.
The latest decision will allow Pakistan to immediately draw about $1.1 billion under the Extended Fund Facility (EFF) and about $220 million under the Resilience and Sustainability Facility (RSF), the multilateral lender said after its board meeting in Washington DC on Friday.
Also Read: IMF, Pakistan reach staff-level agreement on $1.2 billion disbursement
With this, total disbursements to Pakistan under the two ongoing programmes will rise to about $4.8 billion.
Last year, India had opposed IMF's repeated funding support to Pakistan, raising concerns over the effectiveness of such bailouts and flagging the "possibility of misuse of funds for state-sponsored cross-border terrorism". India had urged multilateral lenders to ensure that assistance to Pakistan was used for its intended purpose.
In May 2025, during India's Operation Sindoor against Pakistan, the IMF board had approved a $1 billion disbursement to Islamabad under an existing Extended Fund Facility programme involving total support of $7 billion. It had also cleared a $1.4 billion credit line for climate resilience initiatives.
India had abstained from voting at the IMF board meeting, as IMF rules do not permit voting against proposals. Member countries can either vote in favour or abstain.
Pakistan's 37-month EFF arrangement was approved in September 2024 to build resilience and enable sustainable growth, the IMF said. In May 2025, IMF also approved the 28-month RSF programme to support climate resilience and broader economic reforms.
Such multi-year lending programmes are typically linked to performance targets reviewed periodically by IMF staff before the release of each tranche.
Also Read: India bull Chris Wood likes Pakistan stock market around IMF bailout cycles
"The (Pakistani) authorities' strong implementation, despite the Middle East war, has maintained economic stability and improved financing and external conditions," the IMF said in the statement.
However, it added that Pakistan would need to maintain strong policies and pursue structural reforms to strengthen resilience and achieve sustainable long-term growth amid war-related shocks.
India last year pointed out to IMF that Pakistan had received disbursements from the multilateral lender in 28 of the 35 years since 1989, including four programmes in the past five years alone.
If earlier programmes had succeeded in creating a sound macroeconomic environment, India had argued, Pakistan would not have needed yet another bailout package.
The latest decision will allow Pakistan to immediately draw about $1.1 billion under the Extended Fund Facility (EFF) and about $220 million under the Resilience and Sustainability Facility (RSF), the multilateral lender said after its board meeting in Washington DC on Friday.
Also Read: IMF, Pakistan reach staff-level agreement on $1.2 billion disbursement
With this, total disbursements to Pakistan under the two ongoing programmes will rise to about $4.8 billion.
Last year, India had opposed IMF's repeated funding support to Pakistan, raising concerns over the effectiveness of such bailouts and flagging the "possibility of misuse of funds for state-sponsored cross-border terrorism". India had urged multilateral lenders to ensure that assistance to Pakistan was used for its intended purpose.
In May 2025, during India's Operation Sindoor against Pakistan, the IMF board had approved a $1 billion disbursement to Islamabad under an existing Extended Fund Facility programme involving total support of $7 billion. It had also cleared a $1.4 billion credit line for climate resilience initiatives.
India had abstained from voting at the IMF board meeting, as IMF rules do not permit voting against proposals. Member countries can either vote in favour or abstain.
Pakistan's 37-month EFF arrangement was approved in September 2024 to build resilience and enable sustainable growth, the IMF said. In May 2025, IMF also approved the 28-month RSF programme to support climate resilience and broader economic reforms.
Such multi-year lending programmes are typically linked to performance targets reviewed periodically by IMF staff before the release of each tranche.
Also Read: India bull Chris Wood likes Pakistan stock market around IMF bailout cycles
"The (Pakistani) authorities' strong implementation, despite the Middle East war, has maintained economic stability and improved financing and external conditions," the IMF said in the statement.
However, it added that Pakistan would need to maintain strong policies and pursue structural reforms to strengthen resilience and achieve sustainable long-term growth amid war-related shocks.
India last year pointed out to IMF that Pakistan had received disbursements from the multilateral lender in 28 of the 35 years since 1989, including four programmes in the past five years alone.
If earlier programmes had succeeded in creating a sound macroeconomic environment, India had argued, Pakistan would not have needed yet another bailout package.
