Pakistan prepares for IMF review to unlock $1.2 billion

Pakistan has commenced preparations for the fifth review of its Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF), with a mission expected to visit the country next month. A successful review could unlock approximately $1.2 billion in financing, consisting of $1 billion under the existing EFF and $200 million through the Resilience and Sustainability Facility (RSF) to address climate-related challenges.

The Ministry of Finance has directed government departments to compile progress reports on structural benchmarks, economic reforms, and the implementation of the federal budget. Key areas of focus for the IMF delegation will include energy sector reforms, specifically efforts to reduce circular debt in the electricity and gas sectors, as well as updates on privatization, foreign exchange reserves, interest rates, and inflation.

Pakistan has received roughly $4.8 billion under these programmes to date. If current reviews are successful, the country anticipates further disbursements exceeding $3 billion by September of next year, contingent upon meeting established programme conditions.