The International Monetary Fund (IMF) is set to hold an executive board meeting on May 8 to review the approval of over $1.21 billion in disbursements for Pakistan under its ongoing reform programmes, including the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

The package includes around $1 billion under the $7 billion EFF programme following completion of the third review, along with approximately $210 million under the RSF after the second review.

The IMF had reached a staff-level agreement with Pakistan on March 27 for the release of the funds, subject to board approval. Since then, discussions have continued on key fiscal measures, particularly fuel pricing reforms and petroleum levy adjustments.

Negotiations remain ongoing over adjustments to fuel prices, subsidy reductions, and petroleum levy targets. Pakistan has already collected over Rs1.2 trillion in petroleum levy during the first nine months of the fiscal year and is working toward its Rs1.468 trillion annual target.

Authorities are reportedly considering options such as increasing the levy on petrol or reintroducing it on diesel to address potential revenue shortfalls from the Federal Board of Revenue.

The IMF continues to stress the need for phasing out fuel subsidies as part of broader fiscal consolidation. Pakistan, meanwhile, is seeking some flexibility in programme conditions, with further refinements expected in the upcoming budget cycle.

According to the IMF, programme implementation remains aligned with objectives to strengthen public finances, control inflation within the State Bank of Pakistan’s target range, improve the energy sector, and advance structural reforms alongside social protection measures.

Progress has also been reported under climate-related reforms supported by the RSF, with Pakistan continuing policy actions aimed at reducing vulnerability to climate-related risks.

Following discussions held in Karachi and Islamabad between February 25 and March 2, along with subsequent virtual engagements, total IMF disbursements under both programmes are expected to reach approximately $4.5 billion upon approval.