Donald Trump saves Pakistan again as IMF extends $1.32 billion financial assistance to Pakistan amid deep economic challenges

The IMF has approved a $1.32 billion bailout package for Pakistan, offering critical economic relief to the cash-strapped nation.

Written by: Abhijeet Sen Edited by: Abhijeet Sen

Updated: May 13, 2026, 4:36 PM IST

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https://www.india.com/business/donald-trump-saves-pakistan-imf-extends-1-32-billion-financial-assistance-deep-economic-challenges-resilience-and-sustainability-facility-8413444/ Copy

Pakistan PM Shehbaz Sharif-File image

Pakistan IMF update: In a big boost for Pakistan amid the global energy crisis and ongoing West Asia war, the International Monetary Fund has approved about $1.3 billion in fresh funding for Pakistan. As per the recent update, the IMF Executive Board completed the third review of Pakistan’s Extended Fund Facility and the second review of its Resilience and Sustainability Facility after completing key programme reviews, allowing an immediate disbursement of about $1.1 billion and $220 million. Here are all the details you need to know about the loan approved to Pakistan.

How much amount will Pakistan get from IMF?

As per the document released by the IMF, the total disbursements to Pakistan under the two programmes now stand at about $4.8 billion. The IMF, which is allegedly controlled by the interests of US, led by President Donald Trump said Pakistan’s “strong implementation, despite the Middle East war, has maintained economic stability and improved financing and external conditions”.

Also read: Pakistan helped Iran by hiding its aircraft from US after ceasefire, claims report

Why is IMF giving more loan to Pakistan?

The programme, approved in September 2024, aims to build resilience and support long-term growth. Reforms focus on fiscal stability, tax expansion, and stronger public institutions. Pakistan has made progress. Fiscal performance remains strong. A primary surplus of 1.6 per cent of GDP is expected in fiscal year 2026. Foreign reserves have improved. They rose to $16 billion at the end of December from $14.5 billion in June 2025. Inflation has risen. Higher global commodity prices have pushed up domestic energy costs.

Also read: 9 killed, many injured in bomb blast in Pakistan’s Khyber Pakhtunkhwa on heels of Fateh Khel blast that killed 15 policemen

What IMF Deputy Managing said on loan to Pakistan?

IMF Deputy Managing Director Nigel Clarke said, “Pakistan’s strong program implementation under the EFF arrangement has continued, which has supported macroeconomic stability and the rebuilding of fiscal and foreign exchange buffers.”

He said “GDP growth accelerated, inflation remained contained, and the current account was broadly balanced in the first nine months of FY26”.

The International Monetary Fund (IMF) stressed fiscal discipline. Clarke said, “The authorities’ commitment to the FY26 and FY27 primary balance targets will help strengthen fiscal sustainability and policy credibility.”

Flagging Pakistan’s monetary policy, the IMF said the central bank should keep a tight stance to anchor inflation expectations. The IMF said prices must reflect costs while protecting vulnerable households. It also called for deeper structural reforms. These include privatisation of state-owned firms and stronger anti-corruption efforts.

(With inputs from agencies)