Pakistan and the International Monetary Fund continued their third economic review for a second consecutive day, as State Bank officials briefed the visiting delegation on key financial indicators. The discussions mainly focused on economic data from the first half of the current fiscal year, with both sides closely examining fiscal performance and external financing needs. Moreover, the delegation has scheduled meetings with business representatives before moving to Islamabad for technical-level negotiations with the Ministry of Finance.
During the talks in Karachi, central bank authorities shared updates on foreign exchange reserves, monetary policy direction, exchange rate management, and regulatory reforms. In addition, officials discussed measures related to anti-money laundering, anti-terror financing, and banking supervision to demonstrate compliance with agreed commitments. The State Bank governor and senior management presented detailed figures and policy actions, while technical discussions will continue over the next two days to address outstanding concerns.
Read more : IMF mission begins crucial economic review in Pakistan –
A major concern during the review remains the rollover of the United Arab Emirates’ deposits held with the State Bank. The IMF delegation asked authorities to secure a formal one-year extension of the $2 billion deposit to ensure stability under the External Financing Plan. Although two $1 billion tranches were temporarily extended for two months after maturing in January, these extensions will expire in mid and late April, increasing urgency around negotiations.
Officials informed the delegation that the UAE currently maintains $3 billion in total deposits with the central bank, including a third $1 billion tranche nearing maturity. Furthermore, the government expressed confidence that ongoing talks could lead to longer rollover arrangements, easing immediate pressure on foreign exchange reserves. However, uncertainty surrounding written confirmation has added to financial strain, making external support a critical part of the review process.
Read more : IMF praises Pakistan reforms ahead february review mission
On the macroeconomic front, authorities reported that the current account posted a surplus of $121 million in January, compared to a deficit of $393 million in January last year. Nevertheless, during the first seven months of fiscal year 2026, the current account recorded a deficit of $1.74 billion against a surplus of $564 million in the same period last year, reflecting rising pressure on external accounts. As the delegation prepares to hold further meetings with business leaders and provincial officials, the outcome of this review will significantly influence Pakistan’s financial outlook in the coming months.