Pakistan's IMF Executive Board review is scheduled for mid-May in Washington, where approval of the Staff-Level Agreement reached on March 28 would release approximately $1.2 billion across two programmes: the Extended Fund Facility and the Resilience and Sustainability Facility. The third EFF review and second RSF review both passed successfully, clearing the procedural path to disbursement. Finance Minister Muhammad Aurangzeb confirmed the timeline during Pakistan's participation in the Bretton Woods Spring Meetings. The SLA was reached after an IMF mission that arrived in Islamabad on February 25 shifted to virtual discussions before concluding the agreement by end-March. A second mission is expected in May for pre-budget consultations, a standard feature of programme engagement. The EFF runs through 2027, contingent on remaining reviews, and Pakistan has not yet decided whether to seek a successor arrangement. Aurangzeb held bilateral meetings with senior US Treasury officials, UK counterparts, JICA, AIIB, S&P Global Ratings, and Citibank, covering debt strategy, Eurobond repayment, planned Panda bond issuance, and Pakistan's existing AIIB portfolio of approximately $1.7 billion. Discussions with JICA flagged a resumption of concessional lending for infrastructure and water projects. The mid-May board meeting is the near-term catalyst to watch. Approval would ease Pakistan's external liquidity position and signal continued programme compliance to credit markets.
US inflation hit 4.1% in May 2026, its highest level in three years, driven by rising energy prices, keeping a Federal Reserve rate hike in September firmly on the table. Consumer spending rose on tax refunds and a stock market rally, while business investment in AI equipment also rebounded.
RBI data through May 2026 shows that its 85 basis point repo rate cuts since February 2025 are only partially reaching borrowers, with lending rate transmission described as moderated. Slower pass-through limits relief for loan holders and may pressure the RBI to cut rates further to achieve its growth goals.
U.S. consumer prices rose at a 4.2% annual rate in May, the fastest pace in three years, driven by a spike in energy costs. The reading puts pressure on the Federal Reserve to respond, with potential knock-on effects for interest rates, borrowing costs, and household purchasing power.
US inflation rose to a three-year high in May, driven by surging gas and energy prices tied to the Middle East conflict. The reading complicates the Federal Reserve's path toward cutting interest rates and keeps pressure on household budgets.
