The International Monetary Fund (IMF) on Friday approved the second loan tranche of $1 billion and a new $1.3 billion package for Pakistan, brushing aside India’s objections during the Executive Board meeting.
The package includes a $1 billion second loan tranche under the Extended Fund Facility (EFF) and an additional $1.3 billion through the Resilience and Sustainability Facility (RSF), to be distributed over 28 months, the IMF confirmed.
The board convened to review Pakistan’s progress under the EFF and to decide on adjustments in performance criteria, as well as Pakistan’s request for support under the RSF — a facility designed to help countries build climate resilience and economic sustainability.
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Earlier in March, IMF staff and Pakistani authorities had reached a staff-level agreement on the first review of the EFF and on the new RSF arrangement. Friday’s approval marks the formal endorsement of that agreement.
Despite India’s reported attempt to block the approval, the IMF board endorsed the funding package, signaling continued international support for Pakistan’s ongoing economic reforms.
