Pakistan prepares for IMF review as $1.2bn disbursement expected

 Pakistan prepares for IMF review as $1.2bn disbursement expected
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Summary Pakistan is likely to receive approximately $1 billion under the EFF, while another $200 million is expected under the climate-focused RSF, taking the potential combined disbursement to $1.2 billion.

ISLAMABAD (Dunya News) - Pakistan has begun preparations for talks with the International Monetary Fund (IMF) next month, with the country expected to receive around $1.2 billion following a successful review of its economic programme.

An IMF mission is scheduled to visit Pakistan in September for discussions on the next review of the $7 billion Extended Fund Facility (EFF). The talks are expected to focus on the government's progress in meeting agreed policy commitments and structural benchmarks.

The Ministry of Finance has instructed relevant ministries and government divisions to complete preparations and provide updates on the implementation of commitments agreed with the global lender.

According to sources, the upcoming review will also cover Pakistan's progress under the Resilience and Sustainability Facility (RSF), which supports measures aimed at addressing climate-related economic risks.

The government is expected to brief the IMF delegation on implementation of the new federal budget, progress on structural reforms and efforts to contain the accumulation of circular debt in the power and gas sectors.

Officials will also present updates on the privatisation programme, foreign exchange reserves, interest rates and inflation, according to sources.

Pakistan is likely to receive approximately $1 billion under the EFF, while another $200 million is expected under the climate-focused RSF, taking the potential combined disbursement to $1.2 billion.

The country has so far received around $4.8 billion under the two programmes, while further disbursements exceeding $3 billion are expected by September next year, subject to successful reviews and fulfilment of programme conditions.

Finance Ministry sources said the IMF programme remains broadly on track, with most structural benchmarks and prior actions either completed or at an advanced stage of implementation.

The government expects to fulfil the remaining requirements before formal review talks begin and is confident that the next assessment will be successfully concluded.

A successful review would pave the way for approval by the IMF Executive Board and release of the next tranche, providing additional support to Pakistan's foreign exchange position and external financing needs.

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