Finance Minister Muhammad Aurangzeb confirmed that Pakistan will receive a $1 billion payment from the International Monetary Fund (IMF) on Tuesday. This money is a component of a larger Extended Fund Facility (EFF) of $7 billion that aims to stabilise Pakistan’s economy.
The IMF’s decision follows its recent approval of a $1.4 billion climate-focused loan under the Resilience and Sustainability Facility (RSF), along with the successful first review of the EFF program. These approvals unlock a total of $2 billion in funds for Pakistan so far.
In a statement following a virtual meeting with Johana Chua of Citigroup Global Markets, the finance ministry emphasized that the IMF’s support marks a significant step toward economic recovery and resilience.
Despite recent cross-border military tensions with India, Aurangzeb assured that the situation has not had a major financial toll. He described the skirmishes as a short-term episode with minimal budgetary impact. He added that any additional defense needs would be addressed within existing fiscal capacity.
On the topic of the suspended Indus Waters Treaty, Aurangzeb expressed hope that India would restore the agreement, adding that Pakistan prefers not to plan for a scenario without the treaty.
Pakistan’s next federal budget, covering the fiscal year starting in July, is expected to be finalized in the coming weeks. Budget discussions with the IMF are scheduled between May 14 and May 23.
