KARACHI: The International Monetary Fund (IMF) has made “considerable progress” in talks with Pakistan over its funding facilities, the Fund said late Wednesday, adding that discussions will continue in the coming days.
The IMF mission, led by Iva Petrova, had started talks with Pakistani officials on the third review of a $7 billion Extended Fund Facility (EFF) multi-year program and for the second review of the $1.4 billion Resilience and Sustainability Facility (RSF) from Feb. 25 to Mar. 11, according to the IMF.
The mission observed that Pakistan’s program implementation under the EFF remained broadly aligned with the authorities’ commitments through end-Feb., with both sides making progress on policies, including fiscal consolidation, a sufficiently tight monetary policy and advancing energy sector reforms.
“While considerable progress was made in the discussions, these will continue in the coming days, including to more fully assess the impact of recent global developments on Pakistan’s economy and the EFF-supported program,” the IMF quoted Petrova as saying.
Both EFF, secured in Sept. 2024, and the RSF, secured in May 2025, are key programs crucial for stabilizing Pakistan’s fragile economy. The IMF team was in the country to assess fiscal performance, energy-sector reforms, and external financing needs before approving the next disbursement.
The ongoing IMF engagement is seen as vital for Pakistan as geopolitical tensions and rising global oil prices pose renewed risks for its economic recovery.
The IMF mission observed that Islamabad paid “particular attention” to deepening structural reforms and made “good progress” in the implementation of their agenda to strengthen climate resilience, including through the completion of reform measures under the RSF.
“Discussions also covered the impact of the conflict in the Middle East on Pakistan’s economic outlook, the balance of payments and external financing needs amid volatile and rising energy prices and tighter global financial conditions,” Petrova said, adding:
“The IMF team and the authorities will continue these discussions with a view to conclude them in the coming days.”
