ISLAMABAD: An International Monetary Fund (IMF) mission is set to arrive in Pakistan today to conduct the second review under the $7 billion Extended Fund Facility (EFF), with Islamabad aiming to unlock the next $1 billion tranche.
According to officials in the finance ministry, the IMF delegation will stay in Pakistan for nearly two weeks.
The review will assess Pakistan’s economic performance for the January–June 2025 period, during which detailed economic data will be shared in technical-level discussions before moving to policy-level negotiations led by Finance Minister Muhammad Aurangzeb. The team will also evaluate Pakistan’s performance in the first quarter of the current fiscal year.
Officials expressed confidence that Pakistan has already met most of the agreed targets. If the talks conclude positively, the country will be eligible to receive the $1 billion tranche. Since September 2024, Pakistan has secured $2.1 billion under the programme.
The IMF review will not only focus on fiscal and monetary reforms but also on climate-related initiatives. Officials said climate financing under the $1.4 billion Resilience and Sustainability Facility (RSF) — already approved — is closely tied to Pakistan’s performance under the EFF.
The visit follows Prime Minister Shehbaz Sharif’s meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the UN General Assembly in New York yesterday.
During the meeting, Shehbaz reaffirmed Pakistan’s commitment to the IMF programme but urged the lender to factor in the devastating economic impact of the recent floods. Georgieva expressed sympathy for the victims and reiterated the IMF’s continued support for Pakistan’s reform agenda, acknowledging the government’s progress on key performance benchmarks.
With the IMF mission’s arrival, Islamabad now faces a critical window to reinforce investor confidence, secure vital foreign inflows, and demonstrate resilience in managing both economic challenges and climate vulnerabilities.
