Pakistan, IMF expected to hold key programme review talks in September

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are expected to hold crucial review talks in September to assess the country’s progress under its financial support programmes, sources revealed.

The discussions will include the fourth review of Pakistan’s more than USD7 billion Extended Fund Facility (EFF) programme, as well as the third review of the USD1.4 billion Resilience and Sustainability Facility (RSF) focused on climate-related reforms.

Sources said both programme reviews are expected to be conducted simultaneously. During the talks, the IMF mission will evaluate Pakistan’s economic performance for the second half of the fiscal year, covering the period from January to June.

According to the sources, the outcome of the negotiations will play a key role in determining the release of future loan instalments and the overall progress of both IMF programmes.

IMF’s May visit

An IMF mission concluded a week-long visit to Pakistan in May after holding discussions with government officials on the country’s economic performance, reform agenda and the FY2026-27 budget under the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).

The mission, led by Iva Petrova, described the discussions as constructive, covering recent economic developments, the impact of the Middle East conflict, fiscal policy and progress on structural reforms. Pakistan reaffirmed its commitment to achieving a primary budget surplus of 2% of GDP in FY2026-27 through measures aimed at broadening the tax base, strengthening tax administration and improving public financial management.

The IMF also said the State Bank of Pakistan would maintain an appropriately tight monetary policy to keep inflation under control, while exchange rate flexibility would continue to serve as a key buffer against external shocks. The talks also focused on reforms in the energy sector, state-owned enterprises, financial markets and climate resilience, including power subsidy reforms and disaster risk financing.

Earlier in May, the IMF approved Pakistan’s latest programme review, paving the way for the release of about $1.1 billion under the EFF and $220 million under the RSF, taking total disbursements under both programmes to approximately $4.8 billion. At the conclusion of the visit, the Fund said the next mission, including the Article IV consultation and reviews under the EFF and RSF, was expected in the second half of 2026.