The Executive Board of the International Monetary Fund (IMF) is set to meet on May 9 to evaluate Pakistan’s ongoing financial programs.

The agenda includes a staff-level agreement for a new $1.3 billion arrangement under the climate resilience loan program, as well as the first review of Pakistan’s existing $7 billion bailout initiative.

Finance Minister Muhammad Aurangzeb expressed optimism during a recent visit to Washington, anticipating board approval in early May. If granted, this approval would unlock a $1 billion tranche that Pakistan secured in 2024.

The IMF program has been vital in stabilizing Pakistan’s fragile economy, providing essential external financing and boosting market confidence.

In July 2024, Pakistan and the IMF reached a three-year, $7 billion aid package deal aimed at fostering macroeconomic stability and promoting inclusive growth.

The current 37-month Extended Fund Facility (EFF) program includes six performance reviews, with the next tranche’s release contingent on successful outcomes from these assessments.

In March, Pakistan and the IMF completed the first biannual review of the loan program positively, without imposing additional revenue measures.

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IMF mission chief Nathan Porter noted strong program implementation and significant progress in fiscal consolidation and monetary policy maintenance.

A separate IMF technical mission visited Pakistan to discuss over $1 billion in additional financing for climate resilience initiatives.