The International Monetary Fund (IMF) Executive Board has approved the first review of Pakistan’s ongoing 37-month, $7 billion Extended Fund Facility (EFF), reaffirming Islamabad’s commitment to critical structural and economic reforms.

The approval, which follows a staff-level agreement reached in March, also clears the way for the disbursement of a $1 billion loan tranche to Pakistan. During the March negotiations, the IMF and Pakistani authorities also reached consensus on a new $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF), aimed at helping Pakistan cope with climate vulnerabilities and enhance resilience in the long term.

The Fund’s decision is widely viewed as a strong signal of confidence in Pakistan’s reform trajectory, despite external economic headwinds and geopolitical noise. It comes at a time when reports had surfaced about India’s attempts to diplomatically undercut Islamabad’s position in multilateral financial forums.

Despite regional political pressures and India’s alleged lobbying to block or delay financial assistance to Pakistan, the IMF endorsed Islamabad’s commitment to economic reform and stability.

Diplomatic sources suggest that New Delhi had intensified informal efforts to influence decision-makers within multilateral financial institutions in recent months, hoping to isolate Pakistan economically. However, the approval of the tranche reflects the Fund’s confidence in Pakistan’s compliance with agreed structural benchmarks and reform targets.

This development not only unlocks critical funding at a time of economic need but also bolsters Pakistan’s credibility on the global financial stage — marking a setback for India’s attempts to sway international financial governance against Islamabad.

The IMF’s endorsement comes as Pakistan continues to implement structural reforms in fiscal consolidation, energy sector sustainability, and monetary tightening — measures that have been commended by Fund officials in recent evaluations.