IMF reports strong progress in Pakistan funding review talks
“The IMF says its talks with Pakistan on key funding facilities have made considerable progress.”
Key points
- The IMF says its talks with Pakistan on key funding facilities have made considerable progress.
- Discussions are continuing as both sides assess reform targets and the economic impact of regional instability.
The International Monetary Fund said discussions with Pakistan on its funding programmes had made considerable progress, while talks would continue in the coming days. The review covered Pakistan's Extended Fund Facility and the Resilience and Sustainability Facility.
According to the IMF, implementation of the EFF remained broadly aligned with commitments through the end of February 2026. The lender said both sides discussed fiscal consolidation, tight monetary policy to keep inflation within the State Bank of Pakistan's target range, and reforms aimed at improving the energy sector's viability.
The IMF also said Pakistan had advanced climate-related reforms under the RSF arrangement. It added that the review process included an assessment of how recent developments in the Middle East, including pressure on energy prices and external financing conditions, could affect Pakistan's economic outlook.
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