Pakistan and the International Monetary Fund (IMF) have made “considerable progress” in discussions on the latest reviews of the country’s bailout programme, although a staff-level agreement has not yet been reached, the IMF said on Wednesday.
In an end-of-mission statement, IMF mission chief Iva Petrova said talks would continue in the coming days as both sides work towards concluding the reviews.
“While considerable progress was made in the discussions, these will continue in the coming days,” Petrova said.
The discussions examined potential risks to Pakistan’s economy, including the impact of the ongoing Middle East conflict and rising global energy prices.
Pakistan imports most of its fuel, making its economy particularly vulnerable to fluctuations in international energy markets. The talks therefore assessed possible effects on the country’s balance of payments and external financing needs.
Programme Largely on Track
The IMF said implementation of the $7 billion Extended Fund Facility (EFF) programme has remained broadly aligned with commitments made by Pakistani authorities through the end of February 2026.
Negotiations also reviewed progress under the Resilience and Sustainability Facility (RSF), which focuses on strengthening Pakistan’s ability to cope with climate-related shocks.
According to the IMF, Pakistan has made good progress in implementing climate resilience reforms under this facility.
Key Reforms Under Discussion
Talks between the IMF team and Pakistani officials focused on fiscal consolidation, maintaining a tight monetary policy and advancing reforms in the energy sector.
The discussions covered the third review of Pakistan’s 37-month Extended Fund Facility and the second review of the 28-month Resilience and Sustainability Facility.
Both sides will continue negotiations in the coming days in an effort to finalise the reviews and maintain momentum in Pakistan’s economic reform programme.
(with inputs from Reuters)