ISLAMABAD: Pakistan has fulfilled all required conditions set by the International Monetary Fund, clearing the way for approval of the next loan tranche under its ongoing bailout programme, finance ministry sources said.

The IMF Executive Board is expected to meet in the first week of May to consider the release of around $1.2 billion under the Extended Fund Facility following a staff-level agreement on Pakistan’s third economic review. Officials said Pakistan has provided assurances regarding external financing rollovers from friendly countries, removing major hurdles for disbursement.

According to sources, Pakistan is also likely to receive about $210 million under the IMF’s Resilience and Sustainability Facility. The government has reportedly aligned its petroleum subsidy framework with IMF guidance after consultations on passing through global oil price changes.

Finance officials said targeted subsidies will be financed within the current fiscal budget, supported by an emergency reserve fund of Rs300 billion.

Pakistan is also in discussions with Saudi Arabia and the United Arab Emirates for rollover of deposits, while existing reserves include support from China.

Sources added that upcoming repayments, including $2 billion from the UAE, are expected to be managed without disruption as external financing arrangements remain stable.