Islamabad (Web Desk) – The International Monetary Fund (IMF) has decided to conclude its Pakistan visit ahead of schedule due to security concerns, with negotiations on the next $1.2 billion loan tranche set to continue virtually from Türkiye.
The IMF mission met Finance Minister Muhammad Aurangzeb on Tuesday morning before departing the country shortly afterward. The development comes a day after the United States Department of State issued a Level 3 travel advisory for Pakistan, urging American citizens to reconsider travel and avoid large gatherings, while designating certain areas as Level 4, advising against travel altogether.
In a statement, the IMF’s resident representative said discussions were underway regarding the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). Talks will now proceed online.
Sources said the mission was originally scheduled to remain in Pakistan until March 11. However, heightened regional tensions and protests outside US diplomatic facilities complicated the security environment. The United States Embassy – Islamabad has since restricted staff movement, citing demonstrations near consulates in Lahore and Karachi, as well as planned protests in Islamabad and Peshawar.
During the opening session, mission chief Iva Petrova stressed the need for sustained structural reforms and revenue mobilisation to preserve macroeconomic stability. She noted recent improvements in economic growth but underscored that long-term stability depends on fiscal discipline and institutional reforms.
Petrova also highlighted the importance of increasing social sector spending, particularly in health and education. The mission’s early departure led to the cancellation of meetings related to sovereign wealth fund amendments, e-procurement reforms, inter-agency information sharing, and the phasing out of preferential treatment for state-owned and military-owned enterprises. A review session on the performance of the Federal Board of Revenue was also postponed.
Separately, a global think tank network raised concerns about weaknesses in the IMF’s methodology regarding the disclosure of undeclared assets by bureaucrats.
The IMF programme remains critical for Pakistan’s economic stabilisation efforts, as the country seeks to secure external financing and maintain investor confidence amid ongoing fiscal and geopolitical pressures.
