SBP says it has received $1.3bn tranche from IMF

ISLAMABAD: The State Bank of Pakistan (SBP) said on Wednesday it had received $1.3 billion from the International Monetary Fund (IMF) following the lender’s approval of the latest disbursements under two financing arrangements.

In a post on X, the central bank said, “The IMF Executive Board completed the third review under the Extended Fund Facility (EFF) in its meeting held on May 8 and approved the disbursement of SDR 760 million for Pakistan. Furthermore, the IMF Executive Board has also approved the disbursement of the second tranche of SDR 154 million under the Resilience and Sustainability Facility (RSF).”

The SBP added, “Accordingly, SBP has received SDR 914 million (equivalent to about US$ 1.3 billion) under the EFF and RSF in value May 12 from the IMF.” It said the inflow would be reflected in the country’s foreign exchange reserves for the week ending on May 15.

Last week, the IMF approved the latest review of Pakistan’s reform programme, clearing the way for about $1.1bn under the EFF and $220m under the RSF. With the latest release, total disbursements under the two arrangements have reached roughly $4.8bn.

The IMF said the new funding would provide short-term support, but it also pointed to an uncertain external environment. In its statement issued after the review, the Fund said Pakistan’s recent economic improvement remained vulnerable to increased global volatility, especially spillovers linked to the conflict in the Middle East.

“The authorities’ strong implementation, despite the Middle East war, has maintained economic stability and improved financing and external conditions,” the Fund noted in its statement.

At the same time, the IMF said shocks stemming from the Middle East war highlighted the need to preserve strong policies and continue structural reforms aimed at achieving durable long-term growth.

IMF Deputy Managing Director and Acting Chair Nigel Clarke also stressed the risks arising from the external situation and the need for continued policy discipline. “Amid a more challenging and highly uncertain external environment since the onset of the war in the Middle East, Pakistan needs to maintain strong macroeconomic policies while accelerating reform efforts, which are critical to managing further shocks and fostering higher sustainable medium-term growth,” he said.

Separately, the central bank said on Tuesday in its half-year report that macroeconomic stability had improved during the first half of fiscal year 2026. However, it warned that the war in the Middle East posed risks to the economic outlook amid elevated uncertainty.

Possible supply chain disruptions could affect the path of inflation, external trade, remittance inflows and overall economic activity.

Reserves impact to show in weekly data

The SBP said the latest IMF inflow was received with value dated May 12 and would be incorporated into the official foreign exchange reserves data for the week ending May 15. The announcement came days after the IMF Executive Board completed the third review under the EFF and approved the related disbursements, along with the second tranche under the RSF.

The latest transfer adds to Pakistan’s external financing support at a time when both the IMF and the central bank have flagged risks from the conflict in the Middle East, even as they noted improvement in key macroeconomic conditions.