IMF mission to visit Pakistan next week for program review, budget talks

ISLAMABAD: A team from the International Monetary Fund (IMF), is scheduled to arrive in Pakistan on February 26 (Thursday) to assess the progress of the country’s $7 billion Extended Fund Facility (EFF) and $1.1 billion Resilience and Sustainability Facility (RSF), officials confirmed.

The mission, headed by Iva Petrova, will remain in Pakistan until March 11. It will review past performance and also discuss budget proposals for the 2026-27 fiscal year, with a particular focus on provincial finances. Authorities said the programme’s implementation through December 2025 has largely met targets, although revenue collection fell slightly short. Officials expect the recent Federal Constitutional Court ruling on the super tax in the government’s favor to improve revenue outcomes.

The power sector will be closely monitored during the review, given recent policy fluctuations affecting industries and residential tariffs, though circular debt is reported to be within the set targets. Overall, Pakistan has met almost all quantitative performance criteria (QPCs) by the end of 2025, though some indicative targets and structural benchmarks remain unmet, which could influence future programme implementation.

The biannual review will help both sides evaluate past performance and outline forward-looking implementation plans. A successful review would make Pakistan eligible to receive approximately $1 billion (760 million SDRs) under the EFF and an additional $200 million under the RSF by the end of April.

According to Topline Research, Pakistan is expected to meet nearly all QPCs, though data for one indicator, cash transfers to beneficiaries, remains pending. Analysts noted that a minor shortfall in this area is largely technical, resulting from lower administrative spending rather than reduced support to recipients.

Topline also highlighted that net international reserves may remain below targets, estimated at $6.7 billion against a $7 billion benchmark for September 2025, and below $6 billion for December 2025 against a $6.5 billion benchmark. The State Bank of Pakistan’s net domestic assets (NDA) are expected to range between Rs 12.5 to Rs 13.5 trillion, below the ceiling of Rs 14.9 to Rs 15.1 trillion. Foreign currency swaps stood at $2.2 billion in September and $1.86 billion in December 2025, slightly below target levels.