IMF defends Pakistan bailout, says all targets were met

The International Monetary Fund ( IMF) on Thursday defended its recent bailout package to Pakistan, stating that the country had met all the required targets to qualify for the disbursement.

Responding to a question during a press conference, the IMF clarified that Pakistan’s Extended Fund Facility (EFF) programme was approved in September 2024. Although the first review was scheduled for early 2025, it was completed on 9 May, following which the funds were released.

“This is part of the standard process,” the IMF said.

“Our executive board regularly reviews lending programmes to assess whether they are on track, if the conditions have been met, and whether any policy adjustments are required to maintain progress.”

In Pakistan’s case, the board confirmed that all targets had been achieved. “There was sufficient consensus among board members to proceed with the review and disbursement,” the IMF added.

Director of the IMF’s Communications Department Julie Kozack told Business Today, “I want to make three important points. First, IMF financing is intended solely to address balance of payments challenges. Second, all EFF disbursements go directly into Pakistan’s central bank reserves, not to the government’s budget. There is a zero limit on lending from the central bank to the government. Third, the programme includes structural reforms to improve Pakistan’s fiscal management.”

The IMF’s Executive Board approved the release of two tranches, bringing the total disbursed as of May 2025, to around $2.1 billion under the programme. The 37-month Extended Fund Facility (EFF), which was approved on 25 September 2024, includes a total support package of $7 billion.

The IMF also expressed sorrow over the loss of lives and the human impact of the ongoing tensions between India and Pakistan, adding that it hopes for a peaceful resolution to the conflict.