ISLAMABAD, MAY 9: Pakistan’s economic crisis deepened on Friday as the International Monetary Fund (IMF) prepared to release a fresh $1.1 billion tranche under its Extended Fund Facility (EFF), reinforcing the country’s growing dependency on international assistance to stay afloat, ARY News reported.
The disbursement, expected to be approved by the IMF Executive Board during a scheduled meeting today, is part of a larger $7 billion bailout deal.
With this release, Pakistan’s total receipt under the current program will rise to $2 billion, including $1.3 billion secured through the Resilience and Sustainability Facility (RSF), a fund designed to support climate resilience rather than routine budgetary shortfalls.
“Pakistan has reached a staff-level agreement with the IMF,” said IMF Communications Director Julie Kozack, confirming the new commitments at a recent press briefing.
The additional RSF funds come with a 28-month reform timeline, yet critics argue the lifeline is being used more to plug fiscal holes than to pursue genuine sustainability measures.
Despite Islamabad’s leadership publicly portraying the loan approvals as policy victories, analysts suggest the situation reflects chronic mismanagement and a lack of political will to enact structural reforms.
“This isn’t financial stability — it’s survival by borrowing,” said one economist familiar with IMF negotiations.
The IMF’s language of “performance criteria” and “reform benchmarks” masks a harsher truth: Pakistan has become a regular at the global lender’s door, unable to implement long-term economic planning without external hand-holding.
With no meaningful reforms in sight and rising public debt, critics warn the government is simply postponing an inevitable reckoning. “This country isn’t just borrowing money — it’s borrowing time,” a financial analyst told ARY News.
As the IMF prepares to release the latest tranche, the central question remains: is Pakistan prepared to change course — or just continue stumbling from crisis to crisis?
