ISLAMABAD: The International Monetary Fund (IMF) has acknowledged Pakistan’s significant progress across multiple economic fronts, following the conclusion of review talks held in Karachi and Islamabad from September 24 to October 8, 2025.
In a statement issued Monday, IMF Mission Chief Eva Petrova praised Pakistan’s strong implementation of conditions under the loan programme, noting substantial advancements in fiscal reforms, financial stability, and climate-related initiatives.
Despite the progress, a staff-level agreement could not be finalized. Both sides agreed to continue policy discussions to reach an agreement in the near future.
The IMF commended Pakistan’s efforts to stabilize its economy, maintain financial discipline, and support flood-affected communities. Recommendations included maintaining a tight fiscal policy to control inflation, implementing regular tariff adjustments, and advancing reforms to revive the energy sector.
Discussions also focused on downsizing government institutions, enhancing transparency, and liberalizing the business and commodity markets. The IMF expressed satisfaction with Pakistan’s climate reform agenda.
The review talks were part of the second evaluation under the $7 billion Extended Fund Facility (EFF) and the first review of the $1.4 billion Resilience and Sustainability Facility (RSF), which includes a $400 million tranche.
Officials confirmed that the IMF has set a deadline for the Economic Coordination Committee (ECC) to approve the abolition of two schemes and tighten a third within the current month, as part of the reform commitments.
