Pakistan has made significant progress in stabilising its economy, the International Monetary Fund (IMF) said after concluding its review mission in Islamabad and Karachi. The IMF Mission Chief, Eva Petrova, commended Pakistan’s strong implementation of reform measures under the loan programme, highlighting its success in maintaining fiscal discipline and supporting communities affected by recent floods. However, the review ended without a staff-level agreement, and both sides agreed to continue policy negotiations to finalise the deal.
During the discussions, the IMF appreciated Pakistan’s efforts to strengthen economic stability and resilience through key reforms. The talks focused on fiscal adjustments, inflation control, and energy sector revival, with the Fund recommending a tight fiscal policy to ensure price stability. Regular tariff adjustments, energy reforms, and institutional downsizing were among the major topics, as both sides aimed to enhance transparency and efficiency in governance.
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Moreover, the IMF mission expressed satisfaction with Pakistan’s initiatives to improve the business environment and promote market liberalisation. It acknowledged progress on climate change-related reforms, calling them an important step toward sustainable growth. The mission also reviewed ongoing measures to boost investment and productivity, noting that these policies were essential for long-term economic recovery and public welfare.
The review talks, held from September 24 to October 8, 2025, were part of the second review under the $7 billion Extended Fund Facility (EFF) and the first review under the $1.4 billion Resilience and Sustainability Facility (RSF). Officials confirmed that discussions also covered Pakistan’s progress on financial sustainability, debt management, and revenue generation. These reforms, the IMF noted, were critical for building investor confidence and ensuring economic stability.
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Additionally, the IMF set a new deadline for Pakistan to secure approval from the Economic Coordination Committee (ECC) to abolish two government schemes and tighten a third one within this month. Despite the pending agreement, the IMF described Pakistan’s progress as “notable,” signalling optimism for a breakthrough soon. The continuation of talks reflects both sides’ commitment to achieving sustainable fiscal reforms and long-term economic resilience.