KARACHI: Pakistan began formal talks with a visiting International Monetary Fund (IMF) delegation on Monday as the country prepares for the next review of its $7 billion bailout program.

The IMF team is in Pakistan to conduct a review under the Extended Fund Facility (EFF) approved in September 2024, a multi-year program aimed at stabilizing the economy after a balance-of-payments crisis, high inflation and dwindling foreign exchange reserves.

Pakistan has so far received roughly $3 billion of the EFF. Successful completion of the latest review could pave the way for the release of the next tranche of funds, subject to IMF board approval.

Separately in 2024, Pakistan also secured about $1.3 billion under the IMF’s Resilience and Sustainability Facility, a climate-focused funding window aimed at strengthening the country’s capacity to manage environmental and disaster-related risks.

“Kick-off meeting with IMF Mission held today,” the finance ministry said on Monday as it shared visuals of Finance Minister Muhammad Aurangzeb and senior officials meeting the delegation in Islamabad.

IMF country representative in Pakistan, Mahir Binici, told Arab News in an emailed statement; 

“An IMF mission led by Ms. Iva Petrova has started discussions with the authorities in Karachi and Islamabad on the third review of Pakistan’s Extended Fund Facility (EFF) arrangement and the second review of the Resilience and Sustainability Facility (RSF).”

The discussions are expected to focus on Pakistan’s fiscal performance, revenue collection targets, structural reform implementation and broader macroeconomic stability measures agreed under the program.

The review comes at a sensitive time for Pakistan’s economy, with rising global oil prices and regional instability adding pressure to inflation and external accounts. Analysts say continued IMF engagement remains crucial for maintaining investor confidence and securing external financing.

Pakistan entered the IMF program to restore macroeconomic stability, strengthen public finances and rebuild foreign exchange reserves. Authorities have repeatedly described the reform agenda as necessary to ensure long-term economic resilience.

Further meetings between technical teams are expected over the coming days.