Pakistan and the International Monetary Fund (IMF) have achieved “considerable progress” in discussions regarding the third review of the country’s Extended Fund Facility (EFF), according to IMF mission chief Iva Petrova, who added that negotiations will continue in the coming days to evaluate the effects of recent global developments on Pakistan’s economy.
In a statement, Petrova said the IMF mission and Pakistani authorities held talks on the third review of the 37-month arrangement under the Extended Fund Facility and the second review of the 28-month programme under the Resilience and Sustainability Facility (RSF).
“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 chief said.
She noted that implementation of the programme under the EFF has remained broadly “aligned with the authorities’ commitments” through the end of February 2026, with meaningful headway made in discussions on upcoming policy measures.
“These included sustaining the fiscal consolidation to strengthen public finances; maintaining a sufficiently tight monetary policy to ensure inflation remains durably within the State Bank of Pakistan’s target range; and advancing reforms to improve the viability of the energy sector.”
“Particular attention was paid to deepening structural reforms, given the authorities’ emphasis on accelerating growth, alongside efforts to strengthen social protection and rebuild health and education spending. These discussions are ongoing,” the statement added.
The IMF delegation arrived in Pakistan on February 26 and began formal talks on March 2.
However, on March 4, Finance Minister Muhammad Aurangzeb said the delegation had shortened its stay in Islamabad due to security concerns and departed on March 3. He added that the team had relocated to Istanbul and that he remained in contact with its members.
In her statement on Wednesday, Petrova said Pakistani authorities had also made solid progress in implementing reforms aimed at strengthening climate resilience, including completing several reform measures under the RSF.
She added that discussions also examined the impact of the ongoing conflict in the Middle East on Pakistan’s economic outlook, particularly its balance of payments and external financing needs, as global energy prices remain volatile and financial conditions tighten.
The IMF team and Pakistani authorities will continue discussions in the coming days with the aim of concluding the review process soon.
