IMF Team Arrives in Pakistan for EFF and Climate Facility Reviews

An International Monetary Fund staff mission has reportedly arrived in Pakistan for negotiations on the fourth review of the country’s Extended Fund Facility and the third review of its Resilience and Sustainability Facility. The discussions are due to begin in Islamabad on September 23 and are expected to examine Pakistan’s economic performance, reform commitments and progress against targets agreed under the two programmes.

Official sources said the review process is expected to continue for around two weeks. The mission will assess economic developments and programme performance through June 2026, covering fiscal, monetary and structural indicators as well as commitments made by federal and provincial authorities. The review comes at an important stage of Pakistan’s ongoing effort to maintain macroeconomic stability while managing pressures from energy costs, public finances and external financing requirements.

The talks are expected to focus on structural benchmarks, revenue mobilisation and tax reforms, alongside measures in the electricity and gas sectors. Energy-sector viability has remained a major component of the reform agenda, with authorities seeking to address financial pressures while maintaining sufficient resources for social protection and other public spending priorities. Progress on broader governance and economic reforms is also expected to form part of the assessment.

The mission’s reported arrival had not received formal confirmation from the Finance Ministry, State Bank of Pakistan or the Fund’s resident representative by the time the initial report was filed. Earlier this month, Minister of State for Finance Bilal Azhar Kayani had indicated that negotiations were likely to start on September 23. The discussions will also include an Article IV consultation, the Fund’s regular assessment of a member country’s economy and policy framework.

Pakistan’s 37-month Extended Fund Facility was approved in September 2024 with the objective of strengthening economic resilience and supporting sustainable growth. The programme places emphasis on maintaining macroeconomic stability, rebuilding foreign-exchange reserve buffers, broadening the tax base, improving productivity and competition, reforming state-owned enterprises and strengthening the viability of the energy sector.

The climate-focused Resilience and Sustainability Facility supports reforms intended to reduce Pakistan’s exposure to climate-related economic shocks and natural disasters. Its measures are designed to complement the wider stabilisation programme by strengthening resilience and improving the country’s capacity to manage climate risks that can affect infrastructure, agriculture, public finances and vulnerable communities.

The previous reviews were completed by the Fund’s Executive Board in May 2026, allowing Pakistan to access about $1.1 billion under the Extended Fund Facility and approximately $220 million under the resilience programme. Those disbursements brought total financing received under the two arrangements to around $4.8 billion at that stage.

If the current negotiations result in a staff-level agreement, the outcome would still require approval from the Fund’s Executive Board before additional financing becomes available. Pakistan could then gain access to roughly $1 billion under the Extended Fund Facility and around $200 million through the resilience arrangement. The progress of the talks will therefore be closely watched for signals about fiscal reforms, energy-sector measures and the next stage of external financing for the economy.