Pakistan made significant progress in many areas: IMF
Business
The mission appreciated the efforts to stabilise the Pakistani economy and emphasised the efforts to maintain financial discipline and support flood victims
ISLAMABAD (Dunya News) – A declaration pertaining to Pakistan and the IMF economic review talks has been issued.
According to the statement issued here on Monday, IMF Mission Chief Eva Petrova said Pakistan made significant progress in many areas, declaring Pakistan’s implementation on conditions for loan programme strong.
The statement further said at the end of the negotiations, a staff-level agreement could not be reached between the parties.
It was agreed to continue further policy negotiations to reach a staff-level agreement. The IMF mission appreciated the efforts to stabilise the Pakistani economy and emphasised the efforts to maintain financial discipline and support flood victims.
It was recommended to maintain a tight fiscal policy to keep inflation within the set target, regular tariff adjustments and reforms were agreed upon to revive the energy sector, and discussions were held on reducing the size of government institutions and improving transparency.
According to the statement, measures to liberalise the business environment and commodity markets were considered, and satisfaction was expressed on Pakistan's efforts for reforms related to climate change.
The fund said Pakistan made notable progress toward a staff-level agreement on key economic reviews, following intensive talks on fiscal reforms, financial stability, and measures to strengthen economic resilience.
An IMF team visited Karachi and Islamabad from September 24 to October 8, 2025, to hold discussions on the second review of the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility.
Officials said the talks focused on assessing Pakistan’s ongoing economic reforms and the steps needed to strengthen fiscal stability and sustainability.
Pakistan and the IMF were scheduled to conclude review talks on Wednesday for the completion of the second review under the $7 billion Extended Fund Facility (EFF) and the first tranche of $400 million under the Resilience and Sustainability Facility (RSF) of $1.4 billion.
The IMF has set a deadline for obtaining approval from the Economic Coordination Committee (ECC) of the Cabinet for the abolition of two schemes and the tightening of the third one within the current month.
