The Executive Board of the International Monetary Fund is set to meet on May 8 to consider approving a $1.2 billion tranche for Pakistan under its ongoing bailout programme. Officials expect a positive outcome as Pakistan has reportedly fulfilled all required conditions.

The meeting will review the third economic assessment under the Extended Fund Facility (EFF), along with the second review of the Resilience and Sustainability Facility (RSF) focused on climate-related financing. Approval of both reviews would unlock the next tranche and provide much-needed financial support to the country.

Pakistan and the IMF had reached a staff-level agreement on March 27 after weeks of negotiations. According to sources in the Ministry of Finance, petroleum levy collections are expected to exceed the target of Rs1468 billion, with the government considering further increases. The IMF has also pushed for the removal of subsidies to maintain fiscal discipline.

The government claims that economic indicators are improving, with inflation gradually easing. However, officials acknowledge that external risks remain, particularly due to ongoing tensions in the Middle East, which could impact global markets and Pakistan’s fragile recovery.

Authorities have assured the IMF that strict financial discipline will continue in the coming months to stabilize the economy. Analysts say the upcoming decision will be crucial in shaping investor confidence and ensuring Pakistan’s access to international funding.