IMF Shares First MEFP Draft With Pakistan as Talks Near Staff-Level Deal
ISLAMABAD, PAKISTAN — WEB DESK: The International Monetary Fund has shared the first draft of the Memorandum of Economic and Financial Policies (MEFP) with Pakistani authorities as negotiations move towards the measures required for a staff-level agreement.
The development marks an important stage in discussions between Islamabad and the global lender as the two sides work through policy commitments under Pakistan’s ongoing economic programme.
The MEFP sets out economic policies, reform commitments and quantitative targets that form a key part of negotiations before a staff-level agreement can be finalised.
Pakistan and the IMF are currently holding discussions for the fourth review of the country’s $7 billion Extended Fund Facility (EFF) and the third review under the Resilience and Sustainability Facility (RSF).
The IMF mission is led by Iva Petrova, while Finance Minister Muhammad Aurangzeb and senior economic officials are representing Pakistan in the discussions.
Negotiations are expected to focus on fiscal performance, revenue collection, the energy sector, structural reforms and other commitments under the programme.
Both sides are reviewing the draft MEFP and discussing policy measures that would form the basis of a potential agreement.
The exchange of the first draft does not mean that a staff-level agreement has been reached. Further negotiations and agreement on outstanding policy issues are required before the review can move to the next stage.
Pakistan secured the 37-month EFF in 2024, with the programme designed to strengthen macroeconomic stability, improve public finances, rebuild external buffers and advance structural reforms.
During the previous review completed in March 2026, IMF staff and Pakistani authorities reached an agreement covering the third EFF review and second RSF review.
That agreement included continued commitments on fiscal discipline, tax administration, energy-sector viability, social protection, state-owned enterprise reforms and climate resilience.
The latest negotiations are taking place against a challenging international backdrop, particularly volatility in global energy markets linked to the Middle East conflict.
The IMF has previously identified volatile energy prices as a risk to Pakistan because higher import costs could increase inflationary pressure and weigh on growth and the current account.
Negotiations over the MEFP will now determine the policy framework needed to conclude the current review and reach a new staff-level agreement.
