ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) will convene on May 9 to assess a $1.3 billion staff-level agreement (SLA) with Pakistan and approve the disbursement of this tranche as part of the country’s ongoing 37-month bailout programme.
According to a statement from the IMF, the meeting will cover Pakistan’s Extended Fund Facility (EFF), a request to modify performance criteria, and a proposal for support under the Resilience and Sustainability Facility (RSF).
The SLA—reached in March during the first review of the $7 billion loan facility—is aimed at supporting Pakistan’s climate resilience and sustainability goals under a 28-month framework.
If approved, the decision will unlock $1 billion in new funds under the EFF, bringing total disbursements to approximately $2 billion.
Ahead of the board meeting, Finance Minister Muhammad Aurangzeb met IMF Managing Director Kristalina Georgieva on the sidelines of the 2025 Spring Meetings in Washington, reaffirming Pakistan’s commitment to structural reforms.
Meanwhile, the IMF has downgraded its forecast for Pakistan’s GDP growth this fiscal year to 2.6%, down from an earlier estimate of 3%. The World Bank’s estimate stands slightly higher at 2.7%. For 2025–26, the IMF expects growth to rise to 3.6%.
Inflation is projected to fall to 5.1% in the current fiscal year from 23.4% in 2024, though it is expected to rise again to 7.7% next year.
The lender has also sharply revised down its estimate of Pakistan’s current account deficit—from 1% to just 0.1% of GDP, or around $400 million. The deficit is expected to increase slightly to 0.4% by 2026.
Unemployment is forecast to hold steady at 8% in 2025, down from 8.3% this year, with a further decline to 7.5% projected for 2026.
