Pakistan, IMF Achieve Significant Progress in Extended Fund Facility & Resilience Facility Reviews

An International Monetary Fund (IMF) team, led by Iva Petrova, conducted a visit to Karachi and Islamabad from September 24 to October 8, 2025, to discuss the second review under the Extended Fund Facility (EFF) and the first review under the Resilience and Sustainability Facility (RSF).

At the conclusion of the mission, Petrova stated, “The IMF mission and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement (SLA) on the second review under the 37-month Extended Arrangement under the Extended Fund Facility (EFF) and on the first review of 28-month Arrangement under the Resilience and Sustainability Facility (RSF).”

She emphasized that program implementation remains robust and generally aligned with the authorities’ commitments. Key advances were made in multiple areas, including sustaining fiscal consolidation to strengthen public finances while providing essential support for flood recovery. Efforts to keep inflation within the State Bank of Pakistan’s target range through a tight, data-driven monetary policy also saw progress.

Petrova highlighted, “Significant progress was made in the discussions in several areas, including sustaining fiscal consolidation to strengthen the public finances while providing needed flood recovery support; ensuring inflation remains durably within the SBP’s target range by maintaining an appropriately tight and data-dependent monetary policy; restoring the viability of the energy sector by implementing regular tariff adjustments and cost-reducing reforms; and advancing structural reforms to reduce the footprint of the state, strengthen governance and transparency, foster a more competitive business environment, and liberalize commodity markets.”

Additionally, the team engaged in productive discussions on Pakistan’s reform agenda aimed at enhancing climate resilience, including completing reform measures under the RSF.

The IMF team and Pakistani authorities plan to continue policy discussions to resolve any remaining issues.

“The IMF team wants to express its sympathy to those affected by the recent floods, and is grateful to the Pakistani authorities, private sector, and development partners for many fruitful discussions and their hospitality throughout this mission,” Petrova concluded.