ISLAMABAD — Pakistan and the International Monetary Fund have begun formal programme review discussions in Islamabad, with around $1.2 billion in potential financing linked to the outcome.
The IMF delegation, led by Iva Petrova, began its visit in Karachi before moving to talks with federal authorities.
The discussions involve the Finance Ministry, Federal Board of Revenue and other government institutions. Officials are reviewing Pakistan’s progress on economic targets and reforms agreed under its IMF programmes.
If the reviews are completed successfully and approved by the IMF Executive Board, Pakistan could receive approximately $1 billion under its Extended Fund Facility and another $200 million under a programme supporting climate-related resilience.
The Extended Fund Facility is designed to support economic stability and reforms over several years. The climate-focused programme provides additional support for measures that strengthen the country’s ability to manage environmental and economic challenges.
The current talks cover government revenue, public spending, energy-sector reforms and Pakistan’s broader economic outlook.
Higher international fuel prices and disruptions to regional shipping have also created challenges for energy-importing countries, including Pakistan.
A successful review would support Pakistan’s financing position and demonstrate continued progress under its economic reform programme.
The next step is for Pakistani officials and IMF staff to complete their discussions and, if agreement is reached, refer the reviews to the IMF Executive Board for approval.
The potential $1.2 billion would become available following the required approvals, rather than during the negotiations themselves.