By Gloria Nosa
Pakistan is set to enter a decisive round of negotiations with the International Monetary Fund (IMF) later this month, as both sides prepare for the second review of the Extended Fund Facility (EFF). The talks, scheduled from September 25 to October 8, will determine whether the country secures the next $1 billion installment of the $7 billion program agreed upon in 2024.
According to official sources, the review process will unfold in two phases. First, IMF technical teams will assess Pakistan’s macroeconomic indicators, fiscal policies, and progress on energy sector reforms. Once this groundwork is complete, senior officials from Islamabad and the IMF will move to the policy stage, where conditions for the loan disbursement will be finalized.
The Ministry of Finance, Ministry of Energy, Planning Commission, and the State Bank of Pakistan will be at the center of these high-stakes negotiations. In addition, the IMF delegation plans to hold parallel sessions with key regulatory bodies—including the Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority (OGRA), and the National Electric Power Regulatory Authority (NEPRA)—to evaluate taxation measures, energy pricing frameworks, and governance reforms.
Recognizing the importance of provincial cooperation, the IMF will also engage directly with representatives from all four provinces. This step is intended to ensure consensus on reforms and provide the Fund with a broader perspective on Pakistan’s economic strategy.
So far, Pakistan has already received more than $2 billion in earlier disbursements under the program. In parallel, the government has secured a $1.3 billion climate financing package to be disbursed over 28 months, aimed at strengthening resilience against climate-related challenges while supporting fiscal stability.
Officials in Islamabad remain cautiously optimistic. The Ministry of Finance expressed confidence that the outcome will be positive, stressing that the review’s success is vital not just for securing IMF support, but also for bolstering investor confidence at a time when markets remain sensitive to external financing flows.
A successful agreement later this month would not only unlock the $1 billion tranche but also signal renewed international confidence in Pakistan’s ability to stabilize its economy amid ongoing fiscal and structural challenges.
