Pakistan and the International Monetary Fund (IMF) are preparing for the second economic review under the Extended Fund Facility (EFF), which will begin later this month. The IMF delegation is scheduled to visit from September 25 to October 8. During this visit, technical-level discussions will take place first, followed by critical policy-level negotiations. These talks will involve key government institutions working to secure the next loan installment.
In the first phase, technical teams from the IMF will analyze Pakistan’s economic indicators, energy reforms, and fiscal performance. Afterwards, senior officials from both sides will hold policy-level meetings to finalize the conditions for releasing funds. The discussions will include the Ministry of Finance, Ministry of Energy, Planning Commission, and the State Bank. This sequence aims to ensure a smooth and transparent review process.
Additionally, the IMF will engage with several other institutions to assess the country’s progress on reforms. Meetings will be held with the Federal Board of Revenue (FBR), OGRA, and NEPRA to evaluate taxation, energy pricing, and regulatory frameworks. Furthermore, the IMF team will hold separate sessions with representatives from all four provinces. These interactions are designed to build consensus and gather comprehensive insights into the country’s economic strategy.
Moreover, officials revealed that Pakistan has already received over $2 billion in two earlier tranches under the 37-month, $7 billion program signed in September 2024. They also confirmed a finalized climate financing agreement worth $1.3 billion over 28 months. This additional funding aims to support Pakistan’s climate resilience initiatives while strengthening its economic stability. The successful completion of the review could restore investor confidence in Pakistan’s economy.
Finally, the Ministry of Finance expressed optimism that negotiations will conclude positively, ensuring the release of the $1 billion tranche. They emphasized that these talks are crucial not only for securing much-needed financial support but also for boosting market confidence. With investor sentiment closely tied to IMF approval, a successful outcome would provide significant relief to Pakistan’s struggling economy and reinforce its financial stability moving forward.