KARACHI — An International Monetary Fund mission has begun talks with Pakistani authorities on the next review of the country’s $7 billion Extended Fund Facility (EFF).
The mission, led by Iva Petrova, is conducting the fourth EFF review and the third review of Pakistan’s Resilience and Sustainability Facility (RSF). The discussions also include the IMF’s Article IV consultation, which assesses the country’s broader economic position.
Talks began in Karachi with the State Bank of Pakistan and are expected to move to Islamabad for meetings with the Finance Ministry, Federal Board of Revenue and other departments.
What the IMF will examine
The EFF, approved in September 2024, is a 37-month programme intended to support economic stability and reforms.
The review will examine Pakistan’s performance against commitments through the end of June 2026. Fiscal targets, tax administration, monetary policy, energy-sector reforms and structural measures are among the issues expected to be discussed.
The separate RSF arrangement focuses on reforms designed to strengthen Pakistan’s resilience to climate-related risks.
The IMF’s Article IV consultation takes a wider look at economic conditions, including growth, inflation, government finances and external stability.
What happens after the talks?
A staff-level agreement would mark progress, but it would not automatically release funds.
Disbursements require approval from the IMF Executive Board after the review process is completed.
Current programme schedules indicate that successful approvals could make approximately $1 billion available under the EFF and about $200 million under the RSF.
These amounts are potential disbursements, not funds already received.
Why this review matters
Pakistan is managing higher international energy costs alongside the need to maintain fiscal discipline and foreign exchange stability.
IMF financing can support the country’s external payments position, while the programme’s policy commitments can influence taxation, energy pricing and public spending.
The discussions may therefore affect both government finances and the wider economy.
For now, the mission’s arrival marks the start of negotiations. The outcome will depend on the assessment of Pakistan’s programme performance and any measures agreed during the review.