ISLAMABAD: The International Monetary Fund (IMF) has said that “considerable progress” has been made in ongoing funding talks with Pakistan, though discussions will continue in the coming days.
The statement followed negotiations between Pakistani authorities and an IMF delegation led by Iva Petrova regarding:
The third review of Pakistan’s $7 billion Extended Fund Facility (EFF)
The second review under the Resilience and Sustainability Facility (RSF)
The discussions were held in Karachi and Islamabad as well as through virtual meetings between February 25 and March 11, 2026.
Programme Implementation on Track
According to the IMF, Pakistan’s implementation of the EFF programme has remained largely aligned with agreed commitments up to the end of February 2026.
The lender said progress was made on several policy areas, including:
Fiscal consolidation to strengthen public finances
Tight monetary policy to keep inflation within the target range of the State Bank of Pakistan
Reforms in the energy sector to improve financial sustainability
Structural Reforms and Social Spending
The IMF also emphasized the importance of deepening structural reforms to support long-term economic growth.
The discussions included plans to:
Expand social protection programmes
Increase spending on health and education
Strengthen economic institutions
Climate Reform Progress
Under the RSF arrangement, Pakistan has also made progress in implementing climate resilience reforms aimed at addressing environmental and disaster-related risks.
The IMF acknowledged steps taken by Pakistani authorities to strengthen climate-related policies and governance mechanisms.
Middle East War Impact Discussed
The talks also focused on the economic risks arising from the ongoing conflict in the Middle East, including:
Rising global energy prices
Pressure on Pakistan’s balance of payments
Increased external financing needs
The IMF said negotiations will continue with the aim of finalising the programme review in the coming days.
