Washington: The International Monetary Fund (IMF) executive board on Friday approved Pakistan Economic Review and decided to release second instalment under the seven billion dollars loan program.
Under the second installment Pakistan will be provided one billion dollars.
The decision was taken in the board’s meeting in Washington, which also discussed Pakistan’s request for the modification of performance criteria, and request for an arrangement under the Resilience and Sustainability Facility (RSF).
The ‘lender of the last resort’ and Islamabad reached a staff-level agreement (SLA) and agreed on the first review of the $7billion loan facility in March.
The SLA, a 28-month deal, would support Pakistan’s efforts to mitigate and adapt to climate change, the IMF had said back then.
Pakistan secured a $7 billion bailout programme from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
The programme is critical to the $350 billion economy and Pakistan said it has stabilized under the bailout that helped it stave off a default threat.
Ahead of the executive board meeting, Finance Minister Muhammad Aurangzeb recently met IMF Managing Director Kristalina Georgieva on the sidelines of the World Bank-IMF 2025 Spring Meetings in Washington and reaffirmed the government’s commitment to reforms in key sectors.
