Pakistan IMF programme and economic reforms

Pakistan is preparing for its fifth review of the Extended Fund Facility (EFF) programme with the International Monetary Fund (IMF). A successful review could unlock approximately $1.2 billion in financing, including $1 billion under the EFF and $200 million through the Resilience and Sustainability Facility (RSF).

To meet IMF requirements, the Pakistan Bureau of Statistics (PBS) has completed revisions to monthly import statistics for the 2020-25 period. These revisions follow the discovery of discrepancies, potentially reaching $30 billion, between PBS and State Bank of Pakistan records. The issues, which surfaced during reviews of trade data involving China and expanded to include tariff lines and import calculations, are expected to significantly impact gross domestic product (GDP) figures.

While the country has shown signs of economic stabilization—including a current-account surplus of $72 million during the July-March FY2026 period and foreign-exchange reserves reaching $22.6 billion by mid-May—the IMF continues to push for structural reforms. Specifically, the IMF is advocating for electricity pricing adjustments that reflect actual production and supply costs to mitigate circular debt and fiscal pressure. The government remains tasked with balancing these necessary tariff adjustments against the cost of living for low-income households.