Pakistan has received the second tranche of Special Drawing Rights (SDR) worth $1.023 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), the State Bank of Pakistan (SBP) confirmed on Wednesday. The inflow will be reflected in the central bank’s foreign exchange reserves for the week ending May 16, pushing the total reserves to $11.355 billion.
The disbursement follows the IMF Executive Board’s completion of the first review of Pakistan’s economic reform programme. The Board also approved an additional arrangement under the Resilience and Sustainability Facility (RSF), granting Pakistan access to around $1.4 billion (SDR 1 billion) aimed at bolstering the country’s ability to handle climate and disaster-related challenges.
In its statement, the IMF noted that Pakistan’s performance under the EFF had shown “significant progress,” especially in achieving macroeconomic stability. The country posted a primary budget surplus of two per cent of GDP in the first half of FY25, inflation dropped to a historic low of 0.3 per cent in April, and foreign reserves have steadily risen since mid-2024. The State Bank has responded with an 1100 basis-point cut in the policy rate since June 2025.
Prime Minister Shehbaz Sharif welcomed the development, emphasizing the growing confidence of international institutions in Pakistan’s economy. He also accused India of attempting to sabotage Pakistan’s economic recovery through misinformation and “unilateral aggression.” “Indian attempts to derail the IMF programme have failed,” the Prime Minister’s Office stated, adding that the country is now firmly on the path to stability and development.
Analysts view the IMF’s continued support and the RSF arrangement as a positive signal for global investors and bilateral partners. With reserves projected to reach $13.9 billion by June-end, Pakistan aims to strengthen economic resilience and reduce its vulnerability to external shocks in the months ahead.
