The International Monetary Fund is preparing to release over $1.2 billion to Pakistan, with its executive board scheduled to meet on May 8 to decide on the approval, IMF officials confirmed.
The proposed disbursement is linked to Pakistan’s performance under two active financing arrangements — the $7 billion Extended Fund Facility and the Resilience and Sustainability Facility. Around $1 billion relates to the EFF program following completion of its third review, while approximately $210 million is tied to climate-focused reforms under the RSF.
The IMF had already reached a staff-level agreement in late March, paving the way for the upcoming board decision. Since then, discussions have continued on fiscal adjustments, particularly around fuel pricing reforms and petroleum levy targets, which remain a key part of Pakistan’s revenue framework.
Despite earlier subsidies on fuel, Pakistan has already collected over Rs1.2 trillion in petroleum levies in the first nine months of the fiscal year, putting the government on track to exceed its annual target of Rs1.47 trillion. Officials are still considering further adjustments, including possible changes to petrol and diesel levies, as part of ongoing consultations with the IMF.
The Fund has consistently pushed for reduced fuel subsidies and stronger fiscal discipline, while Pakistan has committed to maintaining stabilization efforts alongside structural reforms in taxation, energy pricing, and public spending.
If approved, total IMF disbursements under the two programs would rise to about $4.5 billion.
